Drum Capital Management has closed a $435 million (€295 million) fund of funds dedicated to the distressed and turnaround space.
Based in Norwalk, Connecticut, Drum Capital is led by Scott Vollmer, who spun out of La Jolla, California-based advisory firm Pacific Corporate Group (PCG) in 2005. Prior to joining PCG, Vollmer was head of credit strategies at Commonfund, an asset manager for university endowments.
Vollmer continues to oversee a distressed-focussed fund of funds raised at Pacific Corporate Group that drew roughly $350 million in commitments.
Drum Capital’s Special Situations Partners II will seek commitments to distressed debt, turnaround and restructuring private funds. The firm has allocations to Sun Capital Partners, MHR Fund Management and Wayzata Investment Partners, among other specialist firms in the distressed niche.
Champlain Advisors acted as exclusive placement agent for the Drum Capital fundraise.
In the wake of the massive wave of debt issuance and subsequent credit crunch, many private equity LPs are gearing up to participate in an expected wave of distress, especially if the US slips into a recession.