Wednesday, 23 July 2014
Last updated 2 min ago
Aug 22 2011 | 2:09pm ET
The slimmed-down FrontPoint Partners is getting even svelter.
FrontPoint, which earlier this year shut down all but four of its hedge funds in the wake of an insider-trading scandal, has agreed to sell one of those four to private equity firm MatlinPatterson. The Greenwich, Conn.-based firm will transfer the management of its three-year-old Strategic Credit Fund, and that fund's management team, to MatlinPatterson on Oct. 1.
Strategic Credit's managers, Noelle Savarese and Marc Rosenthal, informed clients of the plan about a month ago. The two will continue to run the fund, which is expected to bring between $150 million and $180 million to MatlinPatterson, The Wall Street Journal reports. The fund had managed about $500 million earlier this year before a wave of redemptions in the wake of the implication, arrest and guilty plea of Joseph Skowron, the firm's former healthcare hedge fund chief, on insider-trading charges.
FrontPoint will be left with only about $1 billion in assets after the credit team leaves. Almost all of that money is in its FrontPoint-SJC Direct Lending Fund, which debuted in January and has a six-year lockup.
At its peak, FrontPoint managed $10 billion. The hedge fund spun-off from Morgan Stanley in March, more than four years after the investment bank bought the firm.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…