LONDON, Sept 18 (Reuters) - Investment firm Polus

Capital Management said on Wednesday it has received a capital

commitment from the Abu Dhabi Investment Authority for its

Special Situations strategy that would take the strategy's

assets under management to around $5 billion.

The investment comes just as the U.S. Federal Reserve is

expected to cut the cost of borrowing giving a possible boost to

companies with balance sheet concerns, the asset class that

Polus specialises in.

Polus' Special Situations strategy concentrates on secondary

markets in bonds and loans.

The strategy started the year with about $4 billion and has

raised $1 billion so far this year, including ADIA and other

investments, said a person familiar with the matter.

The Wall Street Journal first reported the investment.

Wednesday's widely anticipated Fed interest rate cut is

expected to filter out across the economy, pushing the cost of

borrowing for corporates down, making it easier for troubled

companies to pay back debts.

Hamad Shahwan Aldhaheri, executive director of ADIA's

Private Equities Department, said: "We look forward to

capitalising on a growing market opportunity through our capital

commitment in Polus, which has built deep expertise in providing

bespoke, innovative solutions in a range of situations."

Polus, which has offices in London and New York, has roughly

$11 billion in assets under management.