Old Hill Partners has launched a new hedge fund to take advantage of rising interest in private debt among institutional investors. The new fund will seek to generate current income by originating and investing in the senior secured credit loans of corporate and asset-backed borrowers while also maintaining an emphasis on preservation of capital, according to a report from FINalternatives.

FINalternatives notes Old Hill is targeting $300 million for the fund. Given the nature of private debt investments, it is using a hybrid private equity-like structure in which the life of the fund is divided into a capital raise period, an investment period and a harvest period during which the fund’s positions will amortize, pre-pay or mature.

The amount raised to date has not been disclosed said FINalternatives, although Old Hill has reportedly begun investing from the fund. The company has significant experience in the structured asset-based lending space, having pursued similar transactions through SMAs and co-investments since its inception in 1996.

Founded by former Nomura executive John Howe, Darien, CT-based Old Hill Partners is an SEC-registered investment adviser specializing in customized asset-based lending transactions with primarily middle-market companies.