Cevian, Up Almost 30%, Mulls Closing Largest Fund

Nov 8 2010 | 11:00am ET

Activist hedge fund Cevian Capital may stop accepting new investors as it seeks to avoid exceeding its strategy's capacity.

Senior Partner Harlan Zimmerman said the €3.5 billion firm might close its largest fund, Cevian Capital II, to new investors next year. At the very least, it seems probable Cevian will require new investors to accept a three-year lockup.

"If things play out as we expect, it is probable that we will close the fund to new capital in the first half of 2011," Zimmerman told Reuters. "We like to maintain a tight focus on about eight to 12 companies at a time. That means we need to be thoughtful about how and when we take in capital."

Cevian II currently manages about €3 billion. The fund returned 35.7% last year and is up 29.8% this year after returning 1.8% in October.

In addition to closing the fund to new clients, Cevian may block all inflows to its one- and two-year lockup share classes. Current investors would then have to put new money into its three- or five-year lockup share classes.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.