SkyBridge To Merge Seeding Platforms And List Fund

Jul 19 2010 | 1:03pm ET

SkyBridge Capital, which earlier this month acquired three hedge fund businesses from Citigroup, plans to list its hedge-fund seeding fund on the New York Stock Exchange.

The New York-based firm will first merge its 15 seed and early-stage hedge fund platforms, including those just acquired from Citi Alternative Investments, into a single vehicle. The consolidated fund would have managed about $870 million at the beginning of the month.

SkyBridge founder Anthony Scaramucci said having permanent capital from the closed-end fund would stabilize the business and ensure that the firm had ready capital available when opportunities appear.

“The hedge fund seeding business is in a nuclear winter right now, with negative economic factors such as investor fear, market uncertainty, the economic recession and the prospect of finding more hedge fund rogues and criminals, making it difficult for new hedge fund managers to make it,” he told Pensions & Investments. “Many of last year’s so-called hedge fund ‘green shoots’ are getting stomped on by volatile markets and these macro factors.”

In addition to capital from current investors in SkyBridge’s 15 funds, the firm hopes to raise additional capital in an initial public offering. Scaramucci said he hopes to have $1 billion in the listed fund.

SkyBridge in April agreed to buy Citi’s fund of hedge funds and advisory businesses, as well as its seeding business, adding $4 billion in assets under management and advisory and boosting its own base of AUM and AUA to $7 billion.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…