Management Buyout For Wells Fargo Hedge Fund

Feb 27 2012 | 4:03am ET

Wells Fargo has changed its mind about its internal hedge fund.

The San Francisco-based bank will spin off Overland Advisors in a management buyout, Bloomberg News reports. Wells Fargo will keep a minority stake in the $2.2 billion hedge fund, set up two years ago to house a proprietary trading group.

The new majority owner of Overland will be a company led by Overland CEO Gordy Holterman and Derek Dunn, the firm's chief investment officer. The deal is expected to close by about April 1, pending the approval of investors in Overland's Relative Value Fund.

Terms of the deal were not disclosed.

The spin-off represents a change in plans for Overland; last year, Wells Fargo said it planned to hold on to the hedge fund while redeeming its capital over the next three years. But Wells Fargo said that an independent Overland will have an easier time raising outside capital.

Unlike the initial decision to create Overland and redeem Wells Fargo's capital from the hedge fund, "the change in ownership is not driven by regulatory changes or requirements," Wells Fargo spokeswoman Laura Fay told Bloomberg. "It is simply a realignment of ownership interests that is consistent with industry standards and client expectations."

Overland has about 27 employees.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.