Thursday, 18 September 2014
Last updated 8 hours ago
Nov 6 2007 | 10:49am ET
Two former Citi Alternative Investments chiefs are looking to give institutional investors a piece of the booming alternative investment industry.
Michael Carpenter, the former Citigroup investment banking chief, is reportedly setting up a $1 billion fund that will invest in hedge funds and private equity firms. Joining him in the new endeavor is Dean Barr, who left CAI earlier this year after Citi bought hedge fund Old Lane Partners and installed its founder, Vikram Pandit, as its new alternatives chief.
Southgate Alternative Investments Strategies plans to take minority stakes in at least 10 managers, focusing on firms with at least $3 billion in assets under management. In particular, it is looking at hedge funds investing in Europe and Asia. No one investment will exceed 25% of the firm’s portfolio.
In addition to Carpenter and Barr, the new firm boasts as partners former Credit Suisse investment bank CFO Barbara Yastine, Qtrade Finanical Group co-founder Josephen Meehan and former Mikronite Technologies Group CEO Jeffrey Coats. The principals will invest about $10 million in the firm.
Soutgate will charge a 2% management fee, and share 15% of all profits above 8% per year.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.