GSC Group has launched a fund to purchase mortgage-backed securities as asset managers and private equity firms line up to capitalise on the buyers' frenzy for assets tied to sub-prime market

The alternative assets manager is raising up to $500m (€341.5m) for the Pendulum Fund. Ed Steffelin, who works for GSC Group's real estate investment division GSC Capital, is serving as the portfolio manager for the fund. It will buy distressed securities from "forced and motivated sellers," said an industry source.