Three former portfolio managers of Columbus Nova Partners, a hedge fund run by Columbus Nova that closed down last year, are gearing up to launch a new fund. Seth Taube, Andrew Fentress and Brook Taube, all of whom served as partners and portfolio managers at Columbus Nova Partners, have joined forces with merchant bank Medley Global Advisors and are set to launch the Medley Opportunity Fund L.P. on Oct. 1, according to documentation obtained by FINalternatives.
A source familiar with Columbus Nova Partners said that the fund was shut down last year because of poor performance, however, Ajay Mehra, who was a co-portfolio manager of the fund and still serves as a partner at Columbus Nova, denied that the fund was closed for performance reasons, saying instead that the firm had a “change in corporate strategy.” Calls to Medley were not returned by press time, but the documentation from the New York-based firm states that the partners in the new offering “managed an investment fund pursuing a comparable investment strategy and achieved compounded annual returns, net of fees, in excess of 19% over three years.”
According to the documents, the Medley Opportunities fund, which will have an onshore and an offshore version, will employ a niche strategy, combining structured finance and direct origination with some international elements. Investments will focus on financial services, infrastructure and real estate, natural resources and energy, and consumer and retail sectors. Medley’s objective is to invest in senior loans, mezzanine and subordinate loans, participating loans, and hybrid instruments including warrants, equity or cash flow participation.
In addition to Seth Taube, who is serving as senior portfolio manger, Fentress, also a portfolio manager, and Brook Taube, the chief investment officer, founder and chairman of the firm Richard Medley will be part of the investment team.
The minimum investment in the new fund is $5 million and fees are 1.5% for management and 20% for performance. There is a two-year lock-up period. Citco Fund Services is serving as administrator, and Seward & Kissel and Ogier & Boxalls are legal counsel.