Investcorp, Jed Nussbaum & Nut Tree Capital form strategic relationship

20 Oct 2015

Investcorp, a leading provider and manager of alternative investment products, today announced a strategic relationship through its Seeding Platform with Nut Tree Capital Management (“Nut Tree”), a New York-based alternative credit investment manager led by Jed Nussbaum. Under this agreement, Investcorp will provide seed capital to Nut Tree Capital and, in turn, help its investors gain access to a distressed, stressed and high yield value credit strategy with some exposure to value and event-driven equity.

Founded in June 2015 by Jed Nussbaum, a former Partner at Redwood Capital Management and 16-year investment industry veteran, Nut Tree will pursue a fundamental credit strategy by investing in distressed credit, stressed credit, high yield and value equities across North America. The strategy will look to leverage opportunities in less efficient or undervalued small and mid-size capital structures between $250 million and $2 billion that are facing cyclical challenges, such as defaulted securities, restructurings and liquidations, and earnings inflection points. The strategy will seek downside protection through minimal use of leverage, sector diversification, and an active hedging program.

“Since the launch of our seeding program over a decade ago, we’ve diligently continued to identify and select manager talent with the track record, pedigree and a differentiated strategy required to deliver attractive returns to our investors,” said Nick Vamvakas, Managing Director, Head of Investcorp’s Seeding and Special Opportunity businesses. “A respected and seasoned professional with experience investing over multiple credit cycles, Jed definitively meets these criteria, and we are confident that this partnership with Nut Tree Capital will deliver attractive strategic credit opportunities to our investors across all market conditions.”

“Investcorp’s long history of successfully identifying and developing entrepreneurial investment managers made them the ideal partner for this venture, and we are fortunate to have the benefit of their expertise and capital as we move forward,” said Jed Nussbaum, Founder, Managing Partner and Chief Investment Officer of Nut Tree Capital Management.

“The flexibility and entrepreneurial culture of our firm has enabled us to evolve with the changing market to pursue attractive emerging investment opportunities for our investors, as evidenced by our early move into seeding single managers. The expertise we have gained in the years since our launch has allowed us to form strategic relationships with the industry’s most exceptional talent, such as Jed. We are thrilled to partner with Jed and Nut Tree Capital in the years ahead,” said Lionel Erdely, Head and Chief Investment Officer of Hedge Funds at Investcorp.

Prior to launching Nut Tree, Mr. Nussbaum was at Redwood Capital Management for 12 years, where he served as a Partner from 2010 until his departure earlier this year. One of the longest-tenured investment professionals at the $6.4 billion stressed and distressed credit hedge fund, he invested in the credit and equity of companies across a wide range of industries. He also served as the Deputy Portfolio Manager of Redwood Opportunity Fund from 2013 until his departure. He has also held positions in the Mezzanine Debt Group at Whitney & Co. and in the High Yield Finance department at Chase Securities. Mr. Nussbaum holds an M.B.A. from Harvard Business School and a B.A. magna cum laude from Tufts University.

Investcorp’s Seeding Business was launched in December 2004 to provide investors access to select investment talent with the backing of an institutional platform. Through this program, Investcorp provides initial seed and acceleration capital that ranges from $50 to $100 million as well as operational support to emerging managers with proven track records and differentiated strategies. Investcorp’s Hedge Funds business was launched in 1996.