RAB Deal To Sell Two Hedge Funds Collapses

Aug 31 2011 | 3:04pm ET

RAB Capital's white knight from Hong Kong has proven an apparition: Sunwah International has dropped plans to buy two of the troubled hedge fund's vehicles.

Sunwah, which is controlled by the billionaire Choi family, backed out of the deal, struck in June, because RAB was unable to proceed with the transfer of its Energy and Octane funds until Sunwah bought a U.K. fund management platform, the Financial Times reports. Sunwah had been bidding to take a majority stake in PCE Investors, the platform that it would have moved the RAB funds to; the fate of that deal is unclear.

RAB, which delisted earlier this year amidst catastrophic redemptions, had planned to rebuild its battered franchise around its newly-reconfigured flagship Special Situations Fund. But the firm is happy to continue running the $300 million Energy and Octane funds, the FT reports.

Whether investors are happy is another story: Energy is down 17.2% this year.

For its part, Sunwah said it still plans to build a hedge fund platform in London.

"The current market uncertainties in the United States and Europe have created an environment in which proceeding with the contemplated novation became increasingly difficult," Sunwah CEO Douglas Betts told the FT. "Nevertheless, we remain 100% committed to the development of our asset management business and continue to pursue several opportunities to [create] a stronger, more diversified revenue base for Sunwah."


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note