The $22B hedge fund has suffered a string of losses in its flagship vehicle that reached approximately 26% this year, forcing the firm to raise cash to cover collateral requirements for its lenders. Arini Capital has sold roughly $800M in debt positions in recent weeks to satisfy these margin calls, as its primary fund, which manages about $7B, heads toward its first annual loss.
The downturn was driven by concentrated, leveraged investments in distressed corporate debt, particularly in telecommunications firms such as Altice International, Brightspeed, and Virgin Media. As Arini began liquidating assets to raise cash, it attracted bids on its liquid high-yield debt holdings from other asset managers including Pimco and Oaktree, according to people familiar with the matter.