London-based Algebris Investments (UK) LLP is looking to raise €1 billion to invest in bad debt issued by Italian banks, the Financial Times reported Dec. 13.

CEO Davide Serra said the fund, the second of its kind raised by Algebris, has secured commitments of €210 million so far and is in line to clinch a further €500 million from major institutional investors. The fund will have a six-year lifespan and a three-year required investment period, with fundraising slated to complete by the end of 2017, according to the report.

Algebris, which has US$6 billion of assets under management, reportedly said the new fund would concentrate on investing in real estate-secured loans in northern and central Italy. The company's first nonperforming loan fund was launched in 2014 and has invested €400 million in 36 deals with 24 banks, the FT noted.