Investcorp Seeds Hedge Fund Launched by Former Ramius Employees

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of