Highbridge, Dreyfus To Sell Joint-Venture To Highbridge Chief, Others

Oct 4 2012 | 12:42pm ET

A group of hedge fund managers, including Highbridge Capital Management's own Glenn Dubin, is to buy Highbridge's energy-trading joint-venture with Louis Dreyfus Group.

Dubin leads a group that includes Atticus Capital founder Timothy Barakett, Tudor Investment Corp. founder Paul Tudor Jones and Continental Grain's Paul Fribourg. To avoid a conflict of interest, Dubin will buy most of Dreyfus' stake, while his fellow investors negotiated directly with Highbridge. Dreyfus will retain a minority stake in LDH Energy, which will be renamed Castleton Commodities International.

"As a global commodity merchant, the quality of your relationships, whether at the board or company level, is critical for the number of opportunities you see," LDH CEO William Reed told the Financial Times.

The deal comes as Dreyfus focuses on its core agricultural-trading business, while Dubin, Highbridge's chairman, told the FT that a sale had always been anticipated.

Terms of the sale were not disclosed.

LDH is one of the largest natural gas, crude oil and products traders in the world. It was set up in 2006 by Highbridge and Dreyfus, and made between US$200 million and US$300 million in profit last year. It is also planning a major expansion from its North American base, into Asia and Europe.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of