Investment firm Shearwater Capital has appointed placement agent Brookvine to assist it in the first capital raising for its fund.

Shearwater Capital was established early this year and has since launched the Shearwater Capital Special Opportunities Fund.

United States private investment firm Reservoir Capital provided Shearwater with about $110 million in seed capital.

"We are now entering a capital raising phase and will be looking to work with co-investors both in Australia and offshore," Shearwater Capital managing director Gary Stead said.

The firm is targeting Australian and international investors.

The fund will invest predominantly in illiquid credit across the corporate and real estate sectors. Businesses that are performing well but are finding it difficult to access traditional financing will also be targeted.

"The current market crisis has made it very difficult for firms to access capital. We are seeing quite a few opportunities in the market driven by the extensive need for recapitalisation," Stead said.

Brookvine had been looking to work with a top-flight credit manager, Brookvine managing director Steve Hall said.

"There is now a vast array of credit opportunities. Investors prefer to deal with an on-the-ground manager in Australia who can apply effective due diligence. Shearwater Capital has the experience in the market to source quality deals and rigorously assess them," Hall said.