Chicago-based Deerfield Capital has entered into a new investment venture with Pegasus Capital Advisors.

Chicago-based Deerfield Capital has entered into a new investment venture with Pegasus Capital Advisors.

Under the management of Deerfield Capital Management, the group's investment management subsidiary, Pegasus and DFR have committed to invest USD75m and USD15m respectively primarily in corporate bank loans and other senior secured corporate loans that Deerfield and Pegasus believe are priced at attractive levels.

Jonathan Trutter, DFR's chief executive officer (pictured), says: "Our partnership with Pegasus is indicative of our belief that the current market environment provides an unprecedented opportunity to purchase high quality loan assets at extremely low prices. We believe that DCM's long track record and experience in investing in the bank loan market combined with Pegasus' diverse operating advisor industry knowledge and substantial credit underwriting experience will produce attractive risk-adjusted returns."

Craig Cogut, Pegasus' founder and co-managing partner, says: "We view the well-regarded DCM fixed income platform as a dynamic way to cautiously access the unusually attractive investment opportunities created by the dislocation of global financial markets."

DCM, an alternative asset manager with expertise in bank loan investing, has over USD10.4bn in assets under management including over USD4.2bn in loan assets under management (as of 1 March 2009).

Pegasus is a US-based private equity fund manager that provides capital to middle market companies across a wide variety of industries. Pegasus currently manages over USD1.8bn in assets through several private equity funds and has made more than 70 investments since its inception.