Sun, Jun 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Goldman Sachs buys stake in hedge fund Level Global Investors as global acquisition trend continues

Tuesday, April 06, 2010
Opalesque Industry Update – Goldman Sachs’s Petershill Fund Offshore LP, a $1bn private equity fund set to buy minority stakes in hedge funds, bought a marginal stake in New York-based Level Global Investors, a $4bn hedge fund run by David Ganek.

In a letter sent to investors, Ganek said proceeds from the sale would be used to attract and retain top clients, reported Bloomberg on 2nd April.

A hedge fund manager from Zurich told Opalesque: “[These are] good signs for our start-up, as risk capital is leaving the investment banks for direct investments.”

Under the agreement, Goldman Sachs will not have an investment decision-making role.

Petershill Fund earlier bought into Capula Investment Management, Shumway Capital, Trafalgar Asset Management and Winton Capital Management according to Hedgefund.net.

Ganek is a former employee of Steven Cohen’s SAC Capital Advisors LLC. He founded Level Global Investors in 2003 and his company now employs 43 staff, including 25 investment professionals.

Trend

Goldman Sachs’ foray follows an industry trend of investment banks and wealth managers investing into hedge funds.

The shift in trend was predicted by equity analysts KBW who said early this year that now is the time to buy asset managers as flows of new money into equity funds are expected to be subdued and uncertain in 2010, which could lay the groundwork for a contrarian bet on asset management stocks.

Research made by global accounting consulting firm KPMG recently showed that private equity dealmaking had rebounded in the first quarter of 2010 to its highest level since Lehman Brothers collapsed, highlighting how UK buy-out bosses are expecting an economic recovery.

Early this month, Credit Suisse disclosed plans to buy a minority stake in the $12bn York Capital hedge fund, as Wall Street anticipates big financial firms to continue owning hedge fund stakes.

Two weeks ago, UK asset manager Standard Life Investments (SLI) bought a 75.1% stake in FoHFs manager Aida Capital to provide the group’s clients access to a wider range of alternative assets, Investmentweek.co.uk reported. SLI already manages around $211bn in commercial property, private equity and global absolute return strategy funds.

Other acquisitions involve Sanlam Investments, a large South African investment and wealth management firm, which bought Swiss FoHFs Octane Holdings and raised its stake in South African hedge fund Blue Ink Investments from 50% to 75% in January this year.

JPMorgan Chase & Co. held preliminary talks with Arminio Fraga in February to buy a minority stake in the Brazilian hedge fund firm Gavea Investimentos Ltda.

UK Financial services company Northern Trust Corp. expressed last month its desire to buy a fund administrator or an asset manager.

UK-based Collins Stewart Wealth Management also completed a deal to acquire Corazon Capital, an asset manager based in Guernsey and Geneva, last month.

– PD & BG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  2. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  3. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  4. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  5. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to