Wednesday, 4 March 2015
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May 30 2013 | 12:22pm ET
The Blackstone Group is set to pull almost $400 million from SAC Capital Advisors at its next redemption date, more than twice the amount it originally expected to withdraw.
If Blackstone goes through with the redemption, it will leave it with little or any of its money left at the hedge fund. The alternative investments giant already redeemed about $100 million in the first quarter.
SAC is facing a June 3 redemption deadline, and could see massive withdrawals despite its moves to ease redemption policies. In the first quarter, SAC suffered $1.7 billion in redemptions; since then, it has emerged that federal prosecutors are seriously considering criminal insider-trading charges against the firm.
Word of Blackstone's decision could cause other SAC investors to redeem, The Wall Street Journal reports. Until recently, the firm was among SAC's most ardent supports. And some clients who are invested with SAC though Blackstone have rethought plans to add money to the hedge fund, the Journal reports.
If Blackstone's redemption is part of a major wave of withdrawals at the $15 billion firm—$9 billion of which belongs to founder Steven Cohen and firm employees—it could push SAC to return all outside capital and become a family office. According to the Journal, SAC executives have discussed the possibility, especially if more than half of the remaining $6 billion in investor cash is redeemed.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…