India's Religare Hunts For Hedge Funds After P.E. Deals

Dec 10 2010 | 12:21am ET

Religare Enterprises is moving forward with its plans to build a family of boutique asset management firms following its purchase of a second U.S. private equity firm.

The Indian holding company, headed by industrialist Malvinder Singh and his family, hopes to add a hedge fund manager or two—as well as one of more long-only managers. The firm, which has $1 billion to spend, last week bought a majority stake in Connecticut p.e. firm Landmark Partners, and in February took a majority stake in another p.e. firm, Northgate Capital.

"Now that we have built a strong position in the less-liquid side of alternatives with Northgate and Landmark, we're very interested in the liquid side of alternatives, including hedge funds of funds and single-strategy hedge funds as well as traditional long-only and fixed-income firms," Religare Global Asset Management's Matthew Mongia told Dow Jones Newswires.

Religare bought a 55% stake in Landmark, which has more than $8.3 billion in capital commitments, for $171.5 million. It owns 60% of Northgate, which is based in California. Religare plans to leave the management teams of both firms in place.

"We are never going to buy 100% of a manager," Mongia said. "We will buy control of the firm, but leave behind a meaningful equity in the hands of the firm's management team, so there will be significant alignment of interest."


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of