400 Capital Management LLC

Background

Founded in 2008, 400 Capital Management LLC is an employee-owned alternative asset manager specializing in structured credit. The firm is led by a management team with over three decades of experience in credit markets. With offices in New York and London, 400 Capital Management offers investors a global platform that accesses differentiated credit investment opportunities through total and absolute return strategies in flagship funds and customized portfolio solutions. As of May 1, 2025, the firm manages approximately $7.7 billion in assets under management (AUM).

Key Strategic Focus

400 Capital Management focuses on capturing value across various credit sectors by investing in residential and commercial mortgage loans and securities (RMBS and CMBS), consumer loans, asset-backed securities (ABS), and other structured credit products. The firm's strategic objectives include developing capital markets businesses and creating innovative solutions utilized throughout the market. Their primary markets encompass both the U.S. and Europe, targeting opportunities that require a patient capital approach to provide attractive absolute returns.

Financials and Funding

Since its inception, 400 Capital Management has demonstrated a robust growth trajectory in its AUM. In December 2020, the firm closed its Asset Based Term Fund II (ABTF II) with over $430 million, surpassing its $400 million target. This fund invests in illiquid credit opportunities across public and private credit markets in the U.S. and Europe. By March 2025, the firm announced the close of its fourth private credit fund, Asset Based Term Fund IV (ABTF IV), with $1.39 billion in commitments, exceeding the initial $1 billion target. These funds aim to capitalize on market dislocations in structured products, producing significant liquidity premiums across a wide variety of asset classes.

Pipeline Development

400 Capital Management's pipeline includes a series of Asset Based Term Funds (ABTF), each targeting specific illiquid credit opportunities. The firm has successfully launched and closed multiple funds, including ABTF I in 2017 with $206 million, ABTF II in 2020 with over $430 million, ABTF III in 2022 with $580 million, and ABTF IV in 2025 with $1.39 billion. These funds focus on sectors such as residential and commercial real estate, consumer finance, and specialty finance markets, aiming to deploy capital efficiently to achieve attractive absolute returns.

Technological Platform and Innovation

400 Capital Management leverages a process-oriented platform to consistently generate competitive returns. The firm's approach includes developing capital markets businesses and creating innovative solutions utilized throughout the market. While specific proprietary technologies or scientific methodologies are not publicly disclosed, the firm's success indicates a strong emphasis on innovation and adaptability in structured credit markets.

Leadership Team

The leadership team at 400 Capital Management comprises seasoned professionals with extensive experience in credit markets:

Chris Hentemann: Managing Partner and Chief Investment Officer. Chris has over three decades of experience in trading, investment, and risk management in credit and securitized credit markets. He has a demonstrated record of generating returns, developing capital market businesses, and creating innovative structures and securitization technologies.

Bill Sanders: Partner, President, and Chief Operating Officer. Bill has been instrumental in overseeing the firm's operations and strategic initiatives, contributing to its growth and success.

Alex Cha: Partner. Alex brings extensive experience in structured credit markets, focusing on investment strategies and portfolio management.

Todd Leih: Partner. Todd specializes in trading and risk management, playing a key role in the firm's investment decisions and risk assessment processes.

In November 2020, the firm expanded its leadership by hiring Quinn R. Barton III as Senior Portfolio Manager of Commercial Real Estate (CRE) and Commercial Mortgage-Backed Securities (CMBS). Quinn focuses on originating, structuring, and trading all performing and non-performing CRE-related loans and securities.

Leadership Changes

In April 2025, 400 Capital Management announced the appointment of five new investment strategy heads and two partners in recognition of their contributions to the firm. These appointments reflect the firm's commitment to recognizing and promoting talent within the organization.

Competitor Profile

Market Insights and Dynamics

The alternative credit asset management industry has experienced significant growth, with firms managing substantial assets across various credit sectors. As of March 31, 2024, the top asset managers globally include BlackRock ($10,473 billion AUM), Vanguard Group ($9,300 billion AUM), and Fidelity Investments ($5,303 billion AUM).

Competitor Analysis

Key competitors in the alternative credit asset management space include:

Aristotle Capital Management: An American investment management firm headquartered in Los Angeles, California, with both equity and fixed income strategies. As of September 2024, the firm manages approximately $93 billion in AUM.

Highbridge Capital Management: A multi-strategy alternative investment management firm founded in 1992. As of 2019, it had about $3.9 billion in AUM. The firm operates as a subsidiary of J.P. Morgan Asset Management.

Golub Capital: A credit asset manager based in the United States with over $60 billion of capital under management. The firm has primary business lines in middle market lending, late-stage lending, and broadly syndicated loans.

Oaktree Capital Management: A global alternative investment management firm specializing in credit strategies. As of August 2023, Oaktree was trying to raise over $18 billion for its 12th fund, potentially becoming the largest-ever private debt fund.

Davidson Kempner Capital Management: A global institutional alternative investment management firm with over $36 billion in AUM. The firm is headquartered in New York City, with additional offices worldwide.

Strategic Collaborations and Partnerships

400 Capital Management has engaged in strategic partnerships to enhance its market position and expand capabilities:

Builder Capital Partnership: In March 2018, 400 Capital Management partnered with Builder Capital, LLC to provide capital to production homebuilders for the acquisition and development of single-family residential lots nationwide. Their first acquisition involved 67 acres in Phoenix, AZ, for a residential development project.

Land Banking Arrangement with Dream Finders Homes: In May 2024, 400 Capital Management, in collaboration with Builder Capital, closed a $400 million land banking arrangement with Dream Finders Homes, acquiring over 4,000 residential home sites in Charleston, SC, Greenville, SC, and Nashville, TN.

Operational Insights

400 Capital Management's strategic considerations include:

Market Position: The firm has established itself as a significant player in the alternative credit asset management industry, managing $7.7 billion in AUM as of May 1, 2025.

Competitive Advantages: The firm's leadership team brings over three decades of experience in credit markets, contributing to its ability to develop capital markets businesses and create innovative solutions. Additionally, the firm's global platform allows it to access differentiated credit investment opportunities.

Strategic Opportunities and Future Directions

400 Capital Management's strategic roadmap includes:

Expansion of Investment Strategies: The firm continues to launch new funds, such as ABTF IV in 2025, to capitalize on market dislocations and provide attractive absolute returns.

Geographic Expansion: With offices in New York and London, the firm is well-positioned to explore investment opportunities across the U.S. and Europe.