Redwood Plans $1 Billion Fund for Long, Illiquid Credit Bets

Redwood Capital Management is seeking to raise about $1 billion for a fund built to hold illiquid credit investments with long time horizons, as complex debt maneuvers stretch out the path to restructurings.

The new fund at Redwood, which manages more than $10 billion, will be structured to invest continuously rather than deploy cash only during market dislocations, according to people familiar with its creation and information shared with investors and seen by Bloomberg.