(Bloomberg) -- Alternative asset manager Balbec Capital LP has clinched more than $1.7 billion in commitments for its sixth flagship fund, which will invest in residential and commercial mortgage debt, making it the firm’s largest to date.
The vehicle — dubbed InSolve Global Credit Fund VI — will invest in a variety of mortgage debt, including residential and commercial mortgage loans, mortgage servicing rights and consumer non-performing loans, according to a statement seen by Bloomberg News. The latest haul beat out Balbec’s predecessor fund that closed at just over $1.5 billion in July 2022.
The close comes as borrowers take on more debt tied to their homes with sales of residential mortgage bonds soaring. In the US, issuance of securities tied to mortgages have risen nearly 20% year to date compared to this time in 2024, according to data compiled by Bloomberg. Last year, Balbec sold about 20 residential mortgage deals and priced its latest security this week.
That momentum has also reached Europe, where Balbec is working with Goldman Sachs Group Inc. to issue its first Spanish securitizations for about €800 million ($823 million,) Bloomberg reported.
“We have already put a significant amount of capital to work across the US and Western Europe since launching the Fund and are eager to continue executing on the substantial pipeline of opportunities we have identified in those regions,” said Balbec partner Peter Troisi in the statement.
Balbec launched the fund in 2023, securing $465 million at the time and targeting deals ranging from $1 million to $100 million in size. At close, the fund had received capital commitments from a variety of investors, including sovereign wealth and insurance firms. Balbec expects additional capital for the strategy to be finalized this year, the statement said.
Charles Rusbasan founded Balbec in 2010, having previously launched Bear Stearns’ Max Recovery unit devoted to Chapter 13 bankruptcy debt. Since its inception it has deployed over $23 billion globally and currently manages more than $7 billion of assets.
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