Thursday, 2 July 2015
Last updated 23 min ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…