(Bloomberg) -- London-based hedge fund Cheyne Capital is planning a new vehicle to buy up debt that’s been excessively punished by the coronavirus selloff, the latest in a number of investment firms targeting distressed credit.

The firm is seeking to raise 300 million euros ($325 million) and will launch the fund as soon as next month, according to people with knowledge of the matter. Cheyne will buy up bonds and loans that it deems are now cheap and sell them once they’ve recovered, said the people, who asked not to be identified because the information is private.

A spokeswoman for Cheyne declined to comment on the new vehicle.

Investment firms around the globe that target distressed debt are seeking to make the most of the chaos wrought by the coronavirus pandemic by setting up new funds. Oaktree Capital Group LLC, Highbridge Capital Management and Chenavari Investment Managers are among those who are raising capital to invest in discounted debt.

Cheyne already raised 1 billion euros in June last year for a distressed fund that lends to middle-market size companies. Using that vehicle, the firm became the largest shareholder in U.K. cab operator Addison Lee in February as part of a deal to reduce the company’s debt. Cheyne is also among firms rescuing Spanish paper maker Lecta with fresh funding.

This latest fund will differ as it will target frequently-traded senior-secured debt and won’t seek to take control of companies. It will mostly buy European credit and have a small focus on the U.S., the people said.

Cheyne was founded by former Morgan Stanley bankers Jonathan Lourie and Stuart Fiertz in 2000. The firm hired Anthony Robertson, previously head of BlueBay Asset Management’s global leveraged finance team, to run its distressed debt practice in 2017.

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