California-based Glendon Capital Management LP is preparing to hit the fundraising trail in search of about USD1 billion, sources told Reuters. 

According to the report, the new firm formed by former distressed debt executives from British bank Barclays PLC will likely launch its debut fund in the first half of 2014. Glendon Capital was created April of this year. 

Glendon was formed by Barclays' former head of distressed debt and special situations investing Matthew Barrett and former managing directors Holly Kim and Brian Berman, Reuters said. 

The report, citing Glendon's regulatory filing, said that the three worked at Barclays from 2006 to 2013. Eitan Melamed joined the group in 2007 from Goldman Sachs. 

Reuters said that Barclays spun the team off earlier this year and it continues to manage Barclays money. Glendon has about USD2.8 billion assets under management, including some capital from Barclays as well as other client accounts. 

Barclays allowed Glendon to raise some capital from external sources. The said investors are expected to commit to the new fund, the report said.