Minerva Investment Management, a short-biased fund led by Laks Ganapathi and launching later this month, is seeking short opportunities in sectors including healthcare, retail, restaurants and smaller banks. The fund has hired famed short seller Michael Burry as a senior adviser and is focusing on private credit, direct lending outside public bond markets, which Ganapathi says can conceal deteriorating borrower finances. U.S. private credit defaults reached an annualized 6.3% in August, according to Fitch Ratings, while dedicated short-biased funds have fallen to six from 54 in 2008. Ganapathi said Burry's experience, including his successful 2008 subprime mortgage bets, could benefit the new fund.