(Sharecast News) - EPE Special Opportunities announced on Friday that it has completed a $2.5m investment in a segregated account of Prelude Structured Alternatives Master Fund, satisfied by cash payment.
The AIM-traded firm said the Prelude account was advised by Atlantic Capital Management, and would invest in distressed credit opportunities, targeting a fund level gross annual return of between 6% and 8%.
It said it would invest in the Prelude junior tranche, and benefit from a leveraged position, receiving an equity-like return.
The investment strategy of the Prelude account would benefit from increased opportunities generated by the default cycle expected in credit markets over the coming period.
"EPIC Private Equity, the investment advisor to the company and a related party, has undertaken, subject to regulatory approval, to acquire a controlling interest in Atlantic Capital Management, the sub-advisor of the Prelude account."
EPE Special Opportunities said it would hold its investment in Prelude through ESO Alternative Investments, which would not pay any management or performance fees to Atlantic Capital Management.
The firm said it is the sole investor in ESO AI - a vehicle which holds its primary and secondary fund investments.
ESO AI's acquisition would diversify EPE Special Opportunities' asset class exposure, in line with its stated investment strategy.
Epe Special Opp (ESO)5 Jun 2024 15:31