Varden Pacific LP is the investment advisor to Varden Pacific Opportunity Offshore I (the Fund). Varden's investment strategy focuses on unique opportunities in corporate credit. Specifically, we target corporate credit assets that were originally created for banks and insurance companies in order to achieve favorable ratings or regulatory capital treatment. Given the changes in the regulatory landscape post-credit crisis, many of these assets are no longer capital efficient to hold and are being forced to market for non-economic reasons with few buyers to absorb the supply and with high barriers to entry.
Varden launched in April 2011 and targets double digit net returns with short duration (<3 yrs) while taking predominately investment grade corporate default risk and utilizing modest financial leverage.