Atalaya raises $250 million for bank debt fund

New York-based alternative investment manager Atalaya Capital has announced that it has closed its third fund offering, raising a vehicle to invest in the debt of small and mid-size companies, especially banks. It says the Atalaya Fund III is capped at $250 million, which it raised in less than three months.

Atalaya, which was set up in 2006, is headed by Ivan Zinn, who previously headed special situations for HBK Investments, and has also worked for DLJ and Highbridge Capital.