Funds Target Distressed Investments

Two large real estate funds are bulking up their distressed investment platforms. Lubert-Alder Real Estate Funds has hired Philadelphia attorney Leonard Klehr to spearhead the launch of a new distressed debt fund and Westport Capital Partners has hired Howard Fife from Jefferies & Company to focus on distressed real estate securities.

Klehr was a founding partner of Klehr Harrison Harvey Branzburg & Ellers and joins Lubert-Alder as vice chairman and partner. Lubert-Adler was a longtime client and Klehr actually paired up investors Dean Adler and Ira Lubert in 1997. He will join Lubert-Adler in September, a firm official said.

Hedge fund Westport has hired Fife as a principal and head trader. At Jefferies, Fife worked with a number of hedge funds. Prior to Jefferies, Fife was at Lazard, Freres & Co., where he launched a distressed debt fund.

Westport was launched in late 2005 by Russel Bernard, a former real estate portfolio manager at Oaktree Capital Management. At Oaktree, Bernard managed more than $2 billion. Fife declined to comment.