SCIO Capital launches Partners Fund II
SCIO Capital, the European structured credit fund advisor, has launched Partners Fund II with initial commitments from European pension funds, targeting a total size of EUR100m.
Partners Fund II aims to take advantage of the dislocation in the European ABS market. As Europe’s “bad banks” continue to de-lever their balance sheets for non-economic reasons, they are offering attractive investment opportunities for experienced buyers.
SCIO works with European banks, often on a bilateral basis, to dispose of non-core, capital-intensive structured credit assets to reduce the banks’ capital costs. SCIO advises its funds and accounts to invest in exposure to these tranches of credit, and also high returns offered by these securitised products.
Greg Branch (pictured), chief investment officer at SCIO, says: “There are still significant opportunities within the European ABS sector as demonstrated by the recent success of Partners Fund I. SCIO has a focused and successful strategy. Such strategy also includes working with banks on a bilateral basis to reduce their balance sheets in a structured and discrete way. These strategies are in return for a yield premium over syndicated transactions. SCIO is one of only a handful of specialist investors with the experience to work on these complex bilateral transactions.”
SCIO was founded in 2009 by Branch, former head of Deutsche Bank’s European ABS trading desk, and Saul Greenberg, former Deutsche Bank’s head of securitization risk Europe and Asia.