Key Takeaways
- • Arini's flagship hedge fund, managing approximately $7bn within a $22bn firm founded by former Credit Suisse trader Hamza Lemssouguer, has lost more than 26% so far this year, according to the Financial Times.
- • Banks providing leverage have issued margin calls, prompting asset sales reportedly exceeding $2bn in face value over the past week, including positions in Merlin Entertainments, Claritev and Sabre.
- • Arini holds approximately $2bn in debt issued by Apollo-backed Brightspeed, which is reportedly considering a Chapter 11 filing, while sizeable positions in Altice International, Aston Martin and The Very Group could be hard to exit.
- • Despite the drawdown, Arini raised $1.5bn in new investor commitments in October, including $425m deployed at the start of the month, and remains open to further fundraising.
Summary
Arini is under mounting pressure from lenders and rival traders as losses at its flagship hedge fund exceed 26% this year, forcing the credit manager to raise fresh capital and sell billions of dollars in debt holdings, according to a report by the Financial Times. The $22bn investment firm, founded by former Credit Suisse trader Hamza Lemssouguer, has been hit by a sharp selloff in distressed corporate debt, with concentrated positions in heavily indebted companies amplifying losses.
The flagship fund, which manages approximately $7bn, has faced margin calls from banks providing leverage. Asset sales reportedly exceeded $2bn in face value over the past week. Arini has reduced positions in several corporate borrowers, including Merlin Entertainments, Claritev and Sabre, as well as more complex credit default swap exposures. Some rival hedge funds have reportedly established short positions against its largest holdings, adding pressure to securities already affected by deteriorating credit conditions.
The firm's exposure to distressed borrowers presents further challenges. Arini holds approximately $2bn in debt issued by Apollo-backed telecoms operator Brightspeed, which is reportedly considering a potential Chapter 11 bankruptcy filing. The fund also has sizeable positions in Altice International, Aston Martin and The Very Group, where restructuring negotiations and trading restrictions could complicate efforts to reduce exposure.
Arini's concentrated credit strategy generated gains of approximately 27% in 2023, 21% in 2024 and 10% in 2025. The same approach has, however, left the fund vulnerable to illiquidity and forced selling during the current downturn. Despite the losses, the firm secured $1.5bn in new investor commitments in October, including $425m deployed at the beginning of the month, and remains open to further fundraising. It maintains relationships with major Middle Eastern sovereign wealth funds, which could provide additional capital as it navigates the credit market dislocation.
The flagship fund, which manages approximately $7bn, has faced margin calls from banks providing leverage. Asset sales reportedly exceeded $2bn in face value over the past week. Arini has reduced positions in several corporate borrowers, including Merlin Entertainments, Claritev and Sabre, as well as more complex credit default swap exposures. Some rival hedge funds have reportedly established short positions against its largest holdings, adding pressure to securities already affected by deteriorating credit conditions.
The firm's exposure to distressed borrowers presents further challenges. Arini holds approximately $2bn in debt issued by Apollo-backed telecoms operator Brightspeed, which is reportedly considering a potential Chapter 11 bankruptcy filing. The fund also has sizeable positions in Altice International, Aston Martin and The Very Group, where restructuring negotiations and trading restrictions could complicate efforts to reduce exposure.
Arini's concentrated credit strategy generated gains of approximately 27% in 2023, 21% in 2024 and 10% in 2025. The same approach has, however, left the fund vulnerable to illiquidity and forced selling during the current downturn. Despite the losses, the firm secured $1.5bn in new investor commitments in October, including $425m deployed at the beginning of the month, and remains open to further fundraising. It maintains relationships with major Middle Eastern sovereign wealth funds, which could provide additional capital as it navigates the credit market dislocation.
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