Crain’s cites Fairbridge fund wind-down after investor withdrawals and losses

Crain’s New York Business reported that Fairbridge Asset Management is closing two private credit funds after investors requested withdrawals tied to real estate losses. The report also said James McManus received an SEC outreach email as he pushes for tighter oversight of private credit.

Why it matters: - Fairbridge’s wind-down highlights pressure inside parts of the private credit market after investor redemption requests and property-related losses. - The case adds to calls for tighter transparency and oversight in private lending, especially when pension money and other investor capital are at risk.

What happened: - Crain’s New York Business published a Nov. 10 report on Fairbridge Asset Management’s decision to wind down two funds. - The funds are Fairbridge Partners LP and Fairbridge Partners Cayman LP. - James McManus, founder of the Center for Private Credit Accountability, was featured in the report again. - The report said McManus received an email from two Securities and Exchange Commission attorneys inviting him to discuss information concerning Fairbridge.

The details: - Investors sought to withdraw nearly 25% of the funds’ roughly $400 million in assets. - The funds fell about 4% in September. - Fairbridge recorded $11 million in writedowns and about $7 million in additional losses. - The SEC declined to comment. - McManus said he appreciates Crain’s continued coverage and praised reporter Aaron Elstein for explaining why the issues matter to borrowers and investors. - McManus has established the Harlem-based Center for Private Credit Accountability, or CPCA, as a nonprofit focused on transparency, ethical lending, and accountability in private credit. - McManus said CPCA seeks to highlight gaps in judicial safeguards and financial oversight that can leave investors facing losses and borrowers at risk of losing properties and development projects. - CPCA is urging lawmakers, public officials, and financial experts to set clear rules for private credit lenders, their associates, and the institutions that finance them. - McManus said investors in private credit funds deserve transparency about how money is managed and what risks are involved. - McManus also said clear rules, meaningful oversight, and accountability are needed when wrongdoing occurs. - McManus said protecting savings, pensions, homes, and livelihoods must come first. - McManus said he will keep advocating for people in the U.S. and abroad who say they were defrauded in private credit transactions. - McManus said investors in Canada and the United Kingdom have contacted CPCA and his attorney, Andrew Laufer, for help and stronger legal oversight. - McManus is also calling on the U.S. Department of Justice to investigate possible wrongdoing involving private credit companies and their partners.

Between the lines: - The Crain’s report places Fairbridge in a wider debate over how private credit funds handle risk when real estate values weaken. - McManus is using the coverage to build momentum for his anti-fraud and investor-protection campaign. - The SEC email suggests regulators may be gathering information, but the agency has not said whether any formal action is underway.

What’s next: - Fairbridge’s fund wind-down will likely be watched for any follow-on losses, investor payouts, or regulatory fallout. - CPCA is expected to keep pressing for stricter private credit rules and broader oversight. - McManus said he plans to continue seeking attention from lawmakers, regulators, and prosecutors on private credit misconduct.

The bottom line: - Fairbridge’s retreat underscores how quickly private credit stress can spread when investors want out and real estate bets sour.