Pimco and Oaktree eye Arini debt as flagship falls 26%

Arini has received bids for some of its high-yield debt holdings from major asset managers including Pimco and Oaktree, Hedgeweek reported, citing Bloomberg.

The credit manager is raising liquidity after losses of about 26% in its flagship for the year through Oct. 23. Arini has already sold positions in several large speculative-grade borrowers, and dealers are holding preliminary discussions with prospective buyers about further disposals, according to Hedgeweek. It is concentrating on its more liquid and better-performing holdings, including debt issued by travel technology company Sabre.

Selling the most liquid holdings first leaves harder-to-price positions carrying more of the remaining book. That suggests the $7.5 billion the flagship managed at the end of July overstates how much could be sold quickly. For an allocator weighing the reopening to existing investors, the question is what a third party would pay today for the positions dealers are not bidding on.

Arini was founded by former Credit Suisse trader Hamza Lemssouguer and has grown from $1 billion to approximately $21.7 billion in assets since launching in 2022. The drawdown puts the flagship on course for its first annual loss, Hedgeweek reported, after several years of returns from distressed and relatively illiquid corporate debt. Rising global interest rates, higher energy prices and concern over AI-related disruption have weighed on lower-rated corporate debt, the report said.

The firm raised $1.5 billion earlier in October, with more than $400 million already allocated, and closed its first direct lending fund, as Alternatives previously reported. Capital committed at the reopening goes into a fund that is selling assets to raise cash.

Hedgeweek framed the sales as an opening for established credit investors to pick up high-yield securities while credit funds with concentrated positions seek liquidity. The talks with dealers remain preliminary.