Hedge Fund Vet Sought To Buy Mortgage Lender For Berkshire

May 18 2012 | 4:09am ET

Prior to its bankruptcy filing and a deal to sell its assets to Fortress Investment Group, Ally Financial's Residential Capital unit was approached by Berkshire Hathaway—led by one of Warren Buffett's new hedge fund protégés.

Berkshire's Ted Wechsler sought to buy the lender prior to its bankruptcy filing this week. Berkshire offered almost nothing up front for the unit, but would have taken on its liabilities.

Buffett assigned Wechsler, who ran his own hedge fund, Peninsula Capital Partners, until being tapped by Buffett as a potential successor at Berkshire last year, to try to buy ResCap due to Berkshire's investments in the mortgage lender's unsecured debt.

But Ally, the former GMAC Financial Services, which is majority owned by the federal government, decided that a bankruptcy filing and sale to Fortress and the private equity firm's Nationstar Mortgage Holdings unit would serve to better protect it from future ResCap liabilities.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of