Phibro Chief’s Hedge Fund Raises More Than $1 Billion

Jun 22 2010 | 1:43pm ET

Fundraising may be tough for many hedge fund managers, but not for Citigroup’s former star energy trader.

Andrew Hall, who led Citi’s hugely profitable Phibro oil-and-gas trading unit, and his new partners at Occidental Petroleum, which bought Phibro last year, raised more than $1 billion for their new hedge fund, Astenback Capital Management. Hall began raising the money in 2008, when he was still at Citi.

Some 37 investors lined up to pour $1.08 billion into the new offshore version of Phibro’s commodities hedge fund. In February, Astenback announced that the onshore version of the fund had raised about $148 million. Astenback, which manages outside money exclusively, with Phibro running Occidental’s own capital, has a $25 million minimum investment requirement.

Park Hill Group, the placement agent owned by the Blackstone Group, participated in the fundraising and will receive about $7.5 million in commissions.

Astenback already managed about $1.4 billion before the fundraising.

Hall and Occidental established Astenback earlier this year to take over management of the Phibro funds. Occidental bought Phibro for $250 million in October, after Hall’s guaranteed $100 million bonus raised the ire of the U.S. government, which owns a large stake in the bank and was pushing it to cut compensation.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...