US firm nears $1bn for distressed-focused fund

Fundamental Advisors’ third real assets vehicle will scout for opportunities in the municipal market, including infrastructure and alternative energy.

Fundamental Advisors, a US alternative assets manager, has closed a $993 million fund focused on the distressed municipal market and public purpose assets including infrastructure.

Fundamental Partners III, launched in 2014, will invest in housing, senior care, alternative energy and hospitality along with infrastructure. Investors in the fund include state and corporate pensions, foundations and financial institutions, according to the firm, with most existing investors committing to the new fund.

“As private capital takes on an increasingly crucial role in developing, revitalising and sustaining critical community assets, the differentiated approach that we pioneered over a decade ago is more vital than ever,” said Laurence Gottlieb, the New York-based firm’s chief executive. He went on to call the opportunities in the current market “increasingly compelling”.

Founded in 2007 and focusing on revitalising distressed assets, Fundamental Advisors has committed around $1.7 billion in capital. Its infrastructure investments include utilities, renewables, toll roads and water treatment facilities. The firm’s previous fund, which closed in 2013, raised $450 million.