Goldman Takes Caxton Stake

Oct 3 2014 | 4:42am ET

A Goldman Sachs private-equity fund investing in hedge funds has bought into one of the most prominent names in the industry.

Petershill II has taken a 9.99% stake in Caxton Associates, one of the longest-established firms to be backed by either it or its predecessor. The fund has the right to boost its stake to 19.99% over the next nine months.

Terms of the investment were not disclosed, although Caxton CEO Andrew Law said it was a “passive minority interest that does not carry with it any investment management or board representation rights.”

It's the third investment for Goldman's Petershill II fund. Petershill II takes equity stakes between 10% and 20% in established hedge funds with strong records and has already invested in credit hedge fund Knighthead Capital Management and equity long/short fund Pelham Capital.

Goldman has said Petershill II aims to raise $1 billion and will make one more investment this year.


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