Sona Asset Management Raises $800 Million for Custom Financing Fund amid Bank Retreat

Sona Asset Management Raises $800 Million to Provide Custom Financing to Businesses

In a move to support businesses struggling to access cash, credit manager Sona Asset Management has raised an impressive $800 million for its second capital solutions fund. The London-based firm exceeded its initial $500 million target, drawing in a mix of existing and new investors, including sovereign wealth funds, insurance companies, endowments, and pension funds.

The fund will be deployed across European credit markets, offering custom financing solutions to companies in need. Sona is capitalizing on a trend where conventional banks are pulling back from lending due to increased interest rates and market distress. This retreat by banks has created opportunities for asset managers like Sona to step in and fill the gap.

Sona’s founder and Chief Investment Officer, John Aylward, highlighted the importance of adapting to the changing credit market landscape. He stated, “Given the ever-changing landscape of credit markets, opportunities emerge where the traditional set-up falls short.”

This successful fundraising effort follows a previous $300 million raised by Sona for its first private-credit capital solutions fund in 2020. The firm has expanded its team with the addition of three senior managers and brought in Stephen Smith, former co-head of global leveraged finance syndicate at Barclays Plc, as the head of capital markets.

Sona Asset Management, founded in 2016 by former Deutsche Bank trader Aylward, has grown significantly since its inception. Managing initially for Paloma Partners, the firm now oversees a total of about $8 billion and has 72 employees. With the private credit market heating up, other firms like Diameter Capital Partners, DWS Group, and PGIM are also making moves to capitalize on the trend.

The success of Sona’s fundraising efforts reflects a growing demand for alternative financing solutions in the current economic climate. As traditional banks pull back, asset managers like Sona are stepping in to provide much-needed support to businesses in need of capital.