A fund manager who rose to fame during Wall Street’s meme stock trading frenzy has a plan for raising £300 million through the listing of an investment company in London that will purchase distressed US credit.
Mudrick Capital is believed to have been testing investor interest in an initial public offering (IPO) of a trust. The stockbroker Cenkos has been hired by Mudrick Capital to handle the deal.
If the listing proceeds, it would provide a boost to London’s moribund stock market. The London Stock Exchange has seen a steep drop in transactions since the beginning of the year, as companies were deterred by concerns about the Ukraine war and inflation.
Mudrick is a hedge fund that was established in 2009. It specializes in distressed credit investments. Jason Mudrick is its 48-year-old chief investment officer, a former investment banking professional. It has assets under management totaling $3.4 billion. It has offices both in New York City and London. Two years ago, it expanded into Europe by acquiring a credit-fund from CVC.
Mudrick attracted attention in the US during the social media craze two years ago, when it gained $200 million from bets on AMC Entertainment the cinema chain and GameStop the video game retailer.
Mudrick’s plans to create a London-listed Trust would tap into the growing demand for distressed debt among investors amid expectations that financial markets are poised for an activity boom.
Mudrick and Cenkos have not responded to requests for comments on the flotation plans.