Investcorp Announces Nut Tree Capital Management Reaches $2 Billion in AUM

19 Jul 2020

Investcorp today announced that one of the alternative managers it previously seeded, Nut Tree Capital Management, LP (“Nut Tree”), has exceeded $2 billion in assets under management.

In addition to its $1.8 billion flagship strategy, Nut Tree recently held the final close of its first Drawdown Fund (“Drawdown Fund” or the “Fund”) with capital commitments of approximately $320 million. The Drawdown Fund was launched to invest primarily in distressed and deeply stressed corporate debt, with a focus on mid-size North American issuers. The Fund is consistent with Nut Tree’s investment strategy to leverage periods of market dislocations to nimbly capture attractive corporate credit investment opportunities.

Based in New York, Nut Tree is an opportunistic alternative credit investment manager that launched in February 2016 with $100 million in assets under management, anchored by strategic capital from Investcorp. Nut Tree is led by Founding Partner and Chief Investment Officer Jed Nussbaum, who was previously a partner at Redwood Capital, a distressed credit manager. Jed’s credit investing experience spans nearly 20 years and multiple market cycles.

“We congratulate Jed Nussbaum and the talented team at Nut Tree on their continued success with this notable AUM milestone and the closing of the Drawdown Fund,” said Elena Ranguelova, Portfolio Strategist and Head of Absolute Return Product Strategy at Investcorp.

Lionel Erdely, Co-Head of Investcorp-Tages added, “Nut Tree’s holistic approach has helped generate strong risk-adjusted returns across cycles. We look forward to building upon this success as we continue to identify attractive investment opportunities, partner with talented managers and serve our global clients with tailored solutions.”

Investcorp’s former Absolute Return Investments business launched its seeding platform in 2004 as one of the first within the alternative asset management space, providing seed and acceleration capital and distribution capabilities to emerging managers with proven track records. As previously announced in May 2020, Investcorp’s Absolute Return Investments business merged with Tages Capital LLP in a 50/50 joint venture to create Investcorp-Tages Limited, a global multi-manager investment firm.