Sunday, 29 May 2016
Last updated 1 day ago
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.