Apollo Takes Stake In Fund Of Hedge Funds Firm Lighthouse

Dec 7 2010 | 1:14am ET

The Carlyle Group isn't the only private equity heavyweight dipping its toes into hedge fund waters this week.

Apollo Global Management said it would take a 40% stake in Australia's HFA Holdings, which owns Lighthouse Investment Partners. The two firms will continue to operate independently, but Apollo will now distribute Lighthouse's funds of hedge funds and managed account products.

New York-based Apollo is paying $75 million to buy the convertible notes in HFA. Lighthouse has about $4.5 billion in assets under management, Apollo has more than $50 billion.

"Lighthouse, throughout its long history, has proven to add significant value to institutional portfolios, most recently with the development of its proprietary managed account program, which we view as a clear differentiator in the marketplace,” Apollo founder Leon Black said. “We are extremely impressed with Lighthouse’s management team and its unique business model, which we believe is highly complementary to our current product offering and broadens our comprehensive range of investment solutions for our clients."


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note