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Fir Tree raises $400m

The New York firm has raised an opportunity fund to acquire mortgage securities, structured products and other opportunities from the US mortgage market.

Fir Tree, the New York-based investment manager, has closed the Fir Tree Mortgage Opportunity Fund having garnered $400 million of commitments.

The firm began raising capital exactly one year ago, and plans to deploy the capital in mortgage-related opportunities, which includes senior, high quality mortgage securities, structured products, and other areas that are related to the fallout in the US mortgage market., it said.

It underlined that it had the freedom to call capital from limited partner commitments as it identifies investment opportunities. In addition, it said limited partners had agreed to a “multi-year lock-up” of their capital to allow Fir Tree to execute its investment strategy through the current credit market cycle.

“As patient investors, we wanted to structure the fund so that we could properly optimize our LP’s capital in 2009,” said Andrew Fredman, managing partner. “Our decision to maintain a cautious approach in 2008 allowed us to take full advantage of the opportunities unfolding in 2009.”

Fir Tree manages more than $4 billion in the US and was founded in 1994.