AllianceBernstein: Deal to Buy Visium's Global Fund 'Not Feasible'

Jul 27 2016 | 10:46pm ET

Plans for embattled hedge fund company Visium Asset Management to sell its $2.5 billion Visium Global Fund to AllianceBernstein have fallen through. 

In a statement Wednesday, AllianceBernstein said it decided against moving forward because the transaction was no longer feasible, according to a Reuters article. The deal was announced in mid-June along with Visium’s decision to shutter its flagship $4 billion Balanced hedge fund. 

However, a week ago, Kenneth Griffin’s hedge fund Citadel LLC lifted 17 portfolio managers from Visium, the majority of which worked on the Global fund and would have transitioned as part of the transaction. Part of that team will now form the nucleus of Citadel’s newest equity group, named Aptigon and led by former Diamondback Capital executive Richard Schimel.

Visium has been embroiled in multiple probes by authorities since March, when it disclosed investigations by the SEC and Department of Justice regarding trading and valuation of securities in one of its credit funds. Subsequently, several of the company’s traders were charged with insider trading infractions in mid-June. One of them, Sanjay Valvani, was found dead of an apparent suicide a week later. 

New York-based AllianceBernstein manages more than $20 billion in alternative investment strategies as part of the roughly $489 billion in AUM the company has as a whole. 

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