Monday, 30 May 2016
Last updated 2 days ago
Dec 16 2010 | 10:03am ET
Alternative asset manager Investcorp has provided seed capital to Ballast Capital Management, a long/short equity hedge fund launched by several former Ramius employees.
Terms of the deal were not disclosed, but Investcorp generally invests between $50 million and $100 million.
The eight-member Ballast team includes CIO Robert Kaynor and President Ryan M. O’Sullivan. Kaynor and two other team members—Mason Stark and Joanna Wald—worked together at the multi-billion dollar Ramius hedge fund.
Ballast joins Investcorp’s single-manager platform, which currently has AUM of $1.7 billion and includes Cura Capital Management, Interlachen Capital Group, Silverback Asset Management, Stoneworks Asset Management and White Eagle Partners.
A source close to the firm told FINalternatives Investcorp hopes to add two to three funds to the platform each year. Currently exposed to fixed income relative value, global macro and European event-driven strategies, it is now considering credit strategies.
Ballast’s Kaynor said: “Partnership with Investcorp offers Ballast a unique opportunity to join Investcorp’s well differentiated platform with proven global reach and experience. We continue to see significant advantages for our strategy as stock correlations break down and alpha generation sets up readily. We value the opportunity to align ourselves with a well known and stable organization. We look forward to leveraging our relationship with Investcorp to enhance our business growth and capabilities.”
The deal has been struck in a difficult fundraising environment for smaller hedge funds. Investors are looking more to larger funds and funds of funds, typically a source of captial for smaller hedge funds, are facing difficulties of their own.
Investcorp’s hedge fund business has about $4.7 billion in assets under management. In addition to its single manager platform, it offers managed account and fund of funds solutions.