Tue, Jul 29, 2014
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro