Sunday, 24 May 2015
Last updated 2 days ago
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.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…