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

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