The Distressed and Credit Opportunities Fund will be managed by chief investment officer, Dimitry Griko who has led Arkaim’s existing Emerging Markets High Yield Corporate Debt strategy since 2015, alongside the five-strong credit team, the firm said in a statement.

The approach of the new fund – like the UCITS fund – will have a strong focus on downside valuation. This strategy includes assessing downside risks and enforcing recovery – both crucial components for managing a credit portfolio. Understanding, and valuing recovery offers a safety buffer for the performing positions and acts as the key profit driver for the non-performing debt, the firm added.