Wednesday, 1 October 2014
Last updated 1 hour ago
Oct 27 2010 | 10:09am ET
With its founder headed for Berkshire Hathaway, Castle Point Capital is closing up shop.
Stone Point Capital, the private equity firm that seeded the $400 million firm five years ago, told investors that its Trident III arm would liquidate the fund, which has posted a 34% cumulative return but has suffered losses in each of its last three years, including this one.
Castle Point founder Todd Combs yesterday was tapped by Berkshire's Warren Buffett to manage a "substantial" amount of money for the firm, making him a front-runner to succeed the legendary Oracle of Omaha.
Stone Point said that Trident III has enjoyed a $54 million return on its initial $35 million investment.
Castle Point has already liquidated about 90% of its investments and expects to finish selling off the portfolio over the next few weeks, although it warned some positions may take longer to liquidate. It also said that it would suspend the accrual of management fees for the parts of its portfolio already in cash.
Trident III said it expected to receive 90% of its money back by the end of November, and the rest following the firm's year-end audit.
"We are happy for Todd," Stone Point said. But it did lament the "disappointing news… given the success that Castle Point has had in building its platform during the past five years."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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