Hedge fund GLG Partners gave potential investors something to think about with its first public earnings announcement. The London firm said yesterday that net income soared 160% in the third quarter compared to the year-ago period. The firm, which is set to go public via a reverse merger early next month, earned US$46 million in the three months through September.
Investors poured US$1.8 billion in new money into the firm’s funds, leading to a sharp increase in management fees. GLG’s revenues rose 80% to US$103 million in the third quarter. The firm’s assets—which rose to $20.5 billion—also got a boost from positive investment performance: Its alternatives products generated an 11.3% net return in the first nine months of the year.
“Although our dollar-weighted performance was just flat on average for all our funds in the quarter, we saw particular strength in our emerging markets business,” Noam Gottesman, co-founder, said. He added that the firm expects to register with the U.S. Securities and Exchange Commission by the end of the year.
Assets are set to rise by another US$805 million after the reverse merger is completed on Nov. 2, as current GLG shareholders plan to invest part of the proceeds in the firm’s funds.
GLG shares are expected to begin trading on the New York Stock Exchange on Nov. 5.