Galleon Mulls Sale, Buyout Of Asia Hedge Fund Unit

Oct 22 2009 | 1:26pm ET

With the main ship sinking in New York, the managers of Galleon Group’s Asian hedge fund are talking management buyout.

The US$500 million Singapore-based unit hasn’t suffered the volume of redemption requests that the firm’s main funds, including that run by founder and suspected insider-trader Raj Rajaratnam, have the days since Rajaratnam’s arrest. The group is struggling to hold on to its investors and distance itself from the scandal-plagued flagship, and a “management buyout is the most logical option,” one source told Reuters.

The Singapore group is doing all it can to reassure investors that Rajaratnam’s problems are not its problems. It has told the Monetary Authority of Singapore that it is “currently not the subject of Securities and Exchange Commission investigations in the U.S.,” Bloomberg News reports.

According to the news agency, Galleon’s Asia chiefs, Frank Wong and David Lau, are trying to drum up interest from outside investors to join the potential buyout. Meanwhile, the firm’s traders in Singapore have cut their leverage and are trying to stay liquid to fill whatever redemption requests might come.

Galleon would consider an outright sale of the unit to an outside investor, according to Bloomberg. But the firm hasn’t received any bids for the group.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of