Polus gathers $600M so far for second distressed-credit fund
What's the deal? Polus CapitalDealroom has a profile for this one. Try Dealroom → Management has raised about $600 million so far for its second special situations fund, the Mediobanca-owned credit manager's follow-on vehicle. The London-based firm is in the market after nearly fully investing its debut fund, according to PEI Private Credit.
Why now? Polus's first fund, Polus Special Situations Fund, closed above target at about €890 million and is reportedly almost fully deployed. Returning quickly suggests the firm still sees opportunities in Europe's stressed loans and bonds.
What's the endgame? The strategy targets secondary investments in bonds and loans in opportunistic, stressed, or distressed situations, mainly across the UK and Europe. Rather than lending to new borrowers, it buys existing positions in companies hit by company-specific or cyclical dislocations.
The debut fund raised capital from investors across the Americas, Europe, the Middle East, and Asia. In 2024, Polus and Mediobanca secured a commitment from a subsidiary of the Abu Dhabi Investment AuthorityDealroom has a profile for this one. Try Dealroom →, lifting the strategy to about $5 billion in assets, according to law firm AshurstDealroom has a profile for this one. Try Dealroom →. The new fund's target and investor lineup have not been disclosed.
What could go wrong? The strategy depends on continued market dislocation. Private-credit fundraising has turned selective, with special-situations fundraising falling 37% in 2025 even as distressed-debt raising jumped nearly 180%, per McKinseyDealroom has a profile for this one. Try Dealroom → — a split shaped by the timing of a few large closes.
The signal: Polus is better known for its CLO platform, and the raise deepens its push into the stressed end of European credit. For LPs, it offers a European route into distressed debt through secondary positions — part of a broader shift of capital beyond plain direct lending.
Read more: altassets.net
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