UBS Readies $2.5 Billion Fund for Loans to Disrupted Companies

The hedge fund arm of UBS Group AG has set up a $2.5 billion fund to invest in private loans to companies hit hard by the pandemic, and those affected by broader disruption in markets since 2020, according to a statement seen by Bloomberg.

UBS O’Connor raised $1.7 billion in equity commitments for its Clover Private Credit Opportunities II Strategy from investors in Europe, Asia, and North America. It plans to invest borrowed money as well, bringing the total expected size of the fund to $2.5 billion.

“The events triggered by dislocation in the markets in 2020 remain a ...