Monday, 30 March 2015
Last updated 3 hours ago
Aug 5 2010 | 1:45pm ET
The next really big hedge fund launch is likely to be the regulator-required spin-off of Goldman Sachs’ proprietary trading business.
Goldman Sachs plans to close its Principal Strategies business and transform it into a hedge fund, Bloomberg News reports. An announcement could come as soon as tomorrow, with the spin-off coming by the end of the year.
It is still unclear how much the GSPS team, led by Morgan Sze, hopes to raise in outside capital, or what role, if any, Goldman will have in the new hedge fund. The newly-passed Dodd-Frank financial regulation reform bars banks from proprietary trading, but allows them to invest up to 3% of their capital in hedge funds.
Goldman appears to be trying to beat other firms to the punch: Under the provisions of the so-called Volcker rule, banks have up to four years to wind down their prop. desks. The move also comes as Morgan Stanley is reportedly finalizing plans to spin-off its FrontPoint Partners hedge fund.
Goldman does not disclose how much GSPS manages. But prop. trading accounts for about 10%, on average, of its annual revenue.
The bank, however, plans to hold on to its private equity businesses. The Wall Street Journal reports that Goldman has no plans to close, sell or spin-off its p.e. units.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…