A Galleon Group co-founder—no, not that one—is teaming up with an executive at private equity firm Thomas H. Lee Capital to found a new hedge fund firm.
Gary Rosenbach, who set up Galleon with accused insider-trader Raj Rajaratnam in 1997, and Lee managing director James Burritt, have set up Rockledge Capital Management. The firm's first fund of hedge funds, the Eider Fund, debuted in October, seeded primarily by Rosenbach and partly by Eider, and ended the year in positive ground. The new firm plans to raise money from outside investors eventually.
"Rockledge will be investing a portion of Gary's capital in hedge funds while he will continue to invest in hedge funds outside of Rockledge," Burritt wrote in an internal e-mail. "Additionally, I am assisting Gary in managing some family investments."
Burritt, who manages THL Capital's Blue Star and Lee Enhanced Offshore funds of funds, will keep his job at that firm.
Rosenbach has not been accused of any wrongdoing in the Galleon insider case. Galleon shut itself down at the end of last year after Rajaratnam's arrest for allegedly leading a massive insider-trading ring. He is set to go on trial next month.