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General municipal debt funds returned 3.9percentt last year, Lipper said.
Forstmann Little is one of a handful of leveraged buyout firms with such debt funds.
The new company will also include several private equity and debt funds.
Specialist "distressed debt" funds emerged that looked for undervalued bonds, rather as value investors combed the stockmarket for bargains.
The two succeed Raphael Kassin, who joined Credit Suisse in April after building up ABN Amro's emerging market debt funds.
In the debt funds, he added, "that has allowed us to handily outperform the index over long periods".
Similar(11)
Other private-debt funds are also busy.
Moreover, clever lawyers for distressed-debt funds have found a weakness in CACs.
Many private-equity firms have long had mezzanine or distressed-debt funds.
Distressed-debt funds that were circling Dana like vultures now have the upper hand.
Private-debt funds lock their investors in for a defined period, which reduces the risk of a run.
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