Dow Kim can’t catch a break.
The former Merrill Lynch investment banking co-chief has been forced to delay the debut of his hedge fund after another major investment bank backed out on plans to seed it. New York-based Diamond Lake Investment Group had expected to launch last month with as much as $1 billion.
But the New York Post reports that Credit Suisse has not made good on its plans to invest—Diamond Lake may never see a dime from the bank—and that a Korean bank that had committed to invest up to $200 million has not come up with most of that money. Last year, Merrill cancelled plans to seed its alumnus’ fund, as well, forcing Kim to downgrade his expected launch size from $3 billion to between $650 million and $1 billion.
The Post reports that the firm, which has its team in place and has opened a Singapore office, still plans to launch the fund, although it may raise only $600 million.