CHICAGO — Sam Zell, undaunted by his failure to keep media giant Tribune Co. out of bankruptcy, put together a $625 million fund to buy distressed securities backed by assets including commercial real estate.
The 67-year-old billionaire filed a private-placement notice last month for Zell Credit Opportunities Fund, described as a private-equity fund that received its initial backing from two unidentified investors.
The fund represents Zell’s return to distressed investing after his $8.3 billion buyout of Tribune culminated in a December bankruptcy filing. Investors expect trillions of dollars in maturing debt on commercial real estate to trigger a wave of bank foreclosures and loan sales.
The Zell fund “is a harbinger of what is to come,” said John Goff, who co-founded Crescent Real Estate Equities Co. with billionaire Rich ard Rainwater. “A lot of loans are coming due, and there are going to be a whole host of opportunities.” Bloomberg News; Associated Press file photo
