Ex-FrontPointer Czech Eyes $1.5 Billion For New Fund

Mar 8 2012 | 1:46pm ET

Former star FrontPoint Partners manager Stephen Czech plans to launch his first post-FrontPoint fund this summer with $1.5 billion—and he's already half-way there.

Czech has raised about $750 million for his new Czech Asset Management, which he founded earlier this year after spinning his $1.1 billion FrontPoint-SJC Direct Lending Fund from the now-shuttered former hedge fund giant, The Wall Street Journal reports. Many of Czech's previous investors—CAM is his fifth firm in four years—have signed on to the new venture which, like the FrontPoint fund, will focus on direct lending.

One-third of the money committed to Czech's new fund has come from Michigan's state pension fund, which has pledged $250 million. Even amidst the turmoil, investors stuck by Czech.

"If someone wanted to make a stink, they could have withheld" their money, Czech told the Journal. "They didn't."

Czech Capital, which formally spun-off from FrontPoint in January, has eight employees and is based in a "still-undecorated" office in Old Greenwich, Conn.

And despite what one of the new firm's directors, Sze Ling Wan, called a "period of limbo" last year as FrontPoint unraveled in the face of an insider-trading scandal, the SJC fund managed an 11% return, completing about 10 deals.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    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…

Publisher's Note