Apollo Seeks Lighthouse Exit

Jan 17 2014 | 12:17pm ET

Apollo Global Management wants out of fund of hedge funds Lighthouse Investment Partners.

The private-equity giant is disappointed with Lighthouse's performance and had disagreements with the firm over strategy, leading to the proposed divorce, Reuters reports. Apollo distributes Lighthouse's funds of funds and managed-account products.

Apollo's dissatisfaction has led Lighthouse owner HFA Holdings—in which Apollo owns a 40% stake—to hire investment bank Freeman & Co. to explore options for the business, which accounts for nearly 90% of its assets under management and about 90% of its operating income. A sale of Lighthouse is possible, according to Reuters.

Apollo bought its stake in HFA just over three years ago, as its p.e. rivals also expanded into funds of hedge funds. But HFA shares haven't appreciated much, as Lighthouse has struggled to increase its revenue.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

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

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of