Arini Fund’s 2026 Losses Top 21% on Distressed Debt

Arini Capital Management’s approximately $7 billion master fund lost an estimated 6.91% between the start of October and the end of last week, following a 15.7% decline in the first nine months of 2026.

The London-based credit hedge fund’s losses stem from concentrated holdings in distressed corporate debt. The positions include bonds and loans issued by telecommunications companies Altice International and Brightspeed, as well as British luxury-car maker Aston Martin. Securities from all three companies have declined in secondary markets this month amid concerns about possible restructurings.

Arini also holds a smaller position in German property group Adler. The company’s bonds have fallen below 60 cents on the euro after political proposals in Berlin to nationalise assets held by large landlords.

Arini’s asset-backed lending and private-credit strategies have performed better than its flagship fund. The firm announced this week that it had closed its first direct-lending fund, which operates through a sourcing alliance with Lazard and aims to deploy more than $4 billion.

Arini has secured $1.5 billion in new commitments for its flagship strategy, including $425 million allocated in early October. The remaining capital is expected to be invested by early 2027.

The firm has described the recent losses as mark-to-market declines and said they do not indicate that its investment thesis has failed. “We do not believe it is an indicator of soured investments, but rather part of the process – being contrarian is a necessary condition for this opportunity set,” Arini wrote in a letter to investors earlier this month.

Arini has provided clients with further information about its valuation methods, liquidity position and internal risk controls. Hamza Lemssouguer, a former Credit Suisse trader, founded the firm in 2021. Arini now manages approximately $22 billion after attracting sovereign wealth funds and institutional investors.