TCI Veterans Raise US$700M At New Hedge Fund

Oct 25 2010 | 2:09am ET

The Children's Investment Fund founder Patrick Degorce has raised more than US$700 million for his new hedge fund in less than a year.

Thélème Partners, founded last year after Degorce retired from TCI, debuted in January with US$200 million. But the London-based firm has had no trouble attracting more money, and it has returned just over 10% this year, to boot, the Financial Times reports.

Among the reasons for the fundraising prowess is Thélème's investor-friendly fee structure. The firm offers a break to investors who accept longer lockups: Those who agree to a three-year lockup pay only 17% for performance and five-year lockups earn investors a cut to 15% from the Thélème's standard 20% performance fee rate. Two-thirds of the funds investors have chosen one of those two share classes.

The firm also promises a reduction in its management fee when it reaches US$3 billion in assets. It plans to soft-close its maiden fund at US$1.2 billion.

Thélème invests in stocks across the U.S., Europe, Asia and emerging markets. The former are most prominent in the portfolio, currently making up more than half of its investments. Degorce is said to believe strongly in a U.S. economic turnaround and Thélème boasts a Los Angeles office, headed by former TCI partner Snehal Amin.


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