Exclusive | Hedge Fund Arini Offloads $800 Million in Debt as Losses Deepen

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 30, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Arini Capital Management has liquidated approximately $800 million in debt positions over the past few weeks, a move driven partly by margin calls from banking counterparties, according to individuals familiar with the matter. The firm’s flagship fund, valued at roughly $7 billion, has suffered losses exceeding 20% since the start of the year, a decline attributed to significant exposure to distressed credits including Altice International, Optimum Communications, Virgin Media, and Brightspeed. Proceeds from the sale of more liquid assets were used to satisfy margin requirements associated with credit default swap indexes and other trades.

Background

• Arini’s founder, Hamza Lemssouguer, established the firm in 2021 after leaving Credit Suisse, growing it into a $22 billion alternative asset manager focused on distressed debt and private credit.
• The fund’s portfolio has also been impacted by holdings in Multi-Color, Aston Martin, and Cornerstone Building Brands, while the firm recently sold positions in Pathway Vet Alliance, Intrum, and Ritz-Carlton Yacht Collection.
• Approximately one-third of Arini’s assets are held in collateralized loan obligation funds, which sources indicated remain stable, and the firm closed its first direct lending fund in October with a target of $4 billion.
• Gavin Yates, the CEO of Arini’s U.S. business, departed in August and is expected to join Citadel’s distressed debt team early next year.

Read the full article at wsj.com

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