Friday, 27 March 2015
Last updated 58 min ago
Dec 4 2008 | 12:26pm ET
Private equity pioneer Thomas Lee may have to throw in the towel on his first hedge fund venture. Lee, the founder of private equity giant Thomas H. Lee Partners, may close his nascent fund of hedge funds venture, Thomas H. Lee Capital Management, which has seen its funds post losses of about 40% this year.
Lee Capital’s Blue Star and Lee Enhanced Offshore funds invest with about 110 underlying managers, including such heavy hitters as SAC Capital Advisors and D.E. Shaw Group. But the highly-levered funds, which manage a combined $1.5 billion, have been burned by the collapse in hedge fund returns, with the leverage roughly tripling their losses.
Now Lee, who founded Lee Capital and a new p.e. shop, Lee Equity Partners, before leaving Thomas H. Lee Partners in 2006, is considering cutting the size of the hedge funds, or shuttering them entirely. Lee himself is the funds’ biggest investor, and the fund’s debt, once as high as $3.2 billion, has fallen to less than $2 billion as other investors have fled. Meanwhile, Lee has sent redemption requests to most of the funds’ underlying managers.
Lee is expected to decide the fate of the funds of funds by the end of the year. Should he keep at it, he plans to reduce or eliminate the funds’ use of leverage.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…