Alp Ercil, the former Asia head of Perry Capital, has raised $440 million for a private-equity style hedge fund that will focus on distressed investment opportunities in credit and equities in the Asia-Pacific, according to a source familiar with the fund's launch.

Unlike a typical hedge fund that raises capital and tries to deploy it from the very first day, Ercil's fund would draw the capital down as and when it sees an investment opportunity, similar to private equity funds, the source said.

The fund is a multi-year fund with a three-year initial lock up, which could eventually be extended. It will charge a management fee but performance fees will only be earned when investment gains are realised.

Ercil declined to comment when contacted by Reuters. The fund raising was first reported by Bloomberg.

Ercil launched the fund after New York-based Perry Capital closed its 16-member Hong Kong office last year, opting to resign rather than relocate to New York or London.