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Fairlight Capital
Jonathan Auerbach runs Fairlight Capital, a Greenwich-based hedge fund focused on distressed credit and post-bankruptcy equities since 2013.
Fairlight Capital
Auerbach established Fairlight Capital in Greenwich, Connecticut in 2013, following a tenure as a managing director at Silver Point Capital, where he focused on distressed and special-situations investing. The firm emerged from the post-financial-crisis credit landscape, drawing on a network cultivated during previous distressed cycles including the 2008-2009 period. Fairlight deploys capital across distressed debt, stressed corporate credit, and post-reorganization equities. The strategy centers on mispriced claims in complex bankruptcy proceedings and out-of-court restructurings, often involving legal catalysts that generic credit screens miss. The firm has been active in energy sector restructurings, media and telecom workouts, and liability management exercises. Geographic focus is predominantly North American middle-market and large-cap situations, but portfolio mandates permit Western European distressed credit when legal frameworks align with the strategy. Auerbach operates a deliberately lean structure, sourcing directly through a network of law firms, claims traders, and restructuring advisors rather than through sell-side desks. The firm's SEC filings indicate a concentrated book of typically 15-25 positions, consistent with a high-conviction, research-intensive approach. Fairlight does not disclose total AUM or exact headcount, but the strategy's complexity and position count imply a boutique team structure. No public philanthropic or co-investment vehicles are recorded. The firm's structural differentiator is a legacy-Silver Point sourcing methodology applied at a smaller capital base, allowing it to investigate bankruptcy dockets and creditor committees that are too small for larger multi-strategy platforms to pursue. The partnership is closely held, and no succession or external ownership arrangements have been publicly disclosed.
General information
Firm type
Asset Manager
Year founded
2013
AUM
$100M - $500M (Altss estimate)
Location
Region
North America
Country
United States
City
Greenwich
Corporate office
Greenwich, CT, United States
Principals
Jonathan L. Auerbach
Founder and Chief Investment Officer
Sector focus
Frequently asked questions
Who runs investment decisions at Fairlight Capital?
Jonathan L. Auerbach, the founder and Chief Investment Officer, leads all investment decisions. He built the firm in 2013 after serving as a managing director at Silver Point Capital, where he specialized in distressed and special-situations credit. No additional portfolio managers are publicly named in SEC filings.
How does Fairlight Capital source its investment opportunities?
Fairlight sources through a direct network of bankruptcy attorneys, claims traders, financial advisors, and creditor-committee participants rather than through broker-dealer intermediation. This approach reflects Auerbach's Silver Point lineage, where proprietary sourcing from restructuring ecosystems was central. The firm's small capital base allows it to pursue docket-level opportunities overlooked by larger distressed funds.
Is Fairlight Capital structured as a family office or a hedge fund?
Fairlight operates as a hedge fund, not a family office. SEC records show it files as an exempt reporting adviser, and its Form ADV indicates pooled investment vehicles with external investors. The firm maintains a concentrated mandate in distressed and special-situations investing.
Does Fairlight Capital participate in fund commitments or only direct deals?
Fairlight is a direct investor, not a fund-of-funds. It purchases claims, bonds, bank debt, and post-reorganization equities directly in the secondary and primary-issuance markets. Public records do not show a history of investing as a limited partner in other managers' funds.
Which sectors does Fairlight Capital explicitly avoid?
No formal exclusion list is published. Given Auerbach's track record at Silver Point, the strategy has historically emphasized capital-intensive industries with hard assets or contractual cash flows—energy, media, telecom, and industrials. Sectors with fewer restructuring catalysts, such as early-stage biotechnology or pre-revenue technology, are unlikely to appear given the credit-orientation of the mandate.
What is Fairlight Capital's known posture on co-investments alongside external GPs?
Fairlight has not disclosed a co-investment program with external managers. Its legal structure and Form ADV suggest it acts as lead or sole investor in its positions rather than participating in clubs alongside other distressed funds. No co-investment vehicles are referenced in SEC filings.
Where does Fairlight Capital's name come from?
Fairlight has not publicly stated the origin of its name. In the absence of firm commentary, the name may reference Fairlight, East Sussex in the United Kingdom—a coastal village—or the Fairlight digital audio brand. No connection to either is confirmed.
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