Hedgemedia's Weekly AltInvestment Global News Round-Up: Share floats are the flavor of the month among alternative investment managers
This week, combative activist hedge fund manager Daniel Loeb of New York outfit Third Point announced plans to list his successful event-driven fund on the London Stock Exchange. He expects to raise EUR 500 million from next month's initial public offering. The net proceeds of the IPO will be immediately invested in the existing USD 5 billion Third Point Offshore Fund, Ltd, which has posted an average annual gain of 23.1 per cent for a decade.
Stephen Schwarzman's Blackstone Group disclosed details of the upcoming highly anticipated USD 4.75 billion float in a Securities and Exchange Commission filing Monday. The world's biggest private equity group will sell 10% of itself to investors later on this month. The move follows the sale of a 9.9% stake to China State Investment Company for USD 3 billion. Schwarzman stands to gain USD 677 million while co-founder Peter Peterson could walk away with an estimated USD 1.8 billion. Shares are expected to debut between USD 29 and USD 31 apiece.
American Capital in Bethesda, Md, is floating 17 million shares in an attempt to raise roughly USD760 million at its current stock price of USD 44.67. The USA's second-largest publicly traded alternative asset manager, behind Fortress, invests in management and employee buyouts, provides mezzanine and senior debt financing for buyouts led by private equity firms and is a direct provider of capital to both public and private companies.
On the real estate side, however, the IPO buzz fell flat with Vector Hospitality in London pulling the plug on a GBP 2.64 billion float that would have made it the UK's largest new real estate investment trust float. Recent unfavorable market conditions and certain corporate governance issues were reportedly to blame.
Star hedge fund manager Edward Lampert is believed to be raising USD 5 billion investor-capital for a new entity via his USD 18 billion outfit ESL Investments.
Asset Alliance of New York has added a new managed-futures fund-of-funds to its roster. JPMorgan Asset Management is launching a fund in partnership with its subsidiary Highbridge Capital Management.
At the same time, Bear Stearns, stung by the sub-prime turmoil, revealed a 23% decline in its High-Grade Structured Credit Strategies Enhanced Leverage Fund, which manages USD 600 million of assets.
Canada's Claymore Investments, a unit of Claymore Group from near Chicago, launches Claymore S&P/TSX Global Mining ETF on the Toronto Stock Exchange. It invests in 107 stocks in everything from coal to precious metals.
Invesco's unit PowerShares Capital Management has come out with five new ETF's listed on the American Stock Exchange. Two of them are in the energy/resources space while the remaining three are related to equities. PowerShares runs 75 ETFs.
Henry McVey, a managing director and chief strategist of Morgan Stanley has gone over to Fortress Investment Group in New York. From his managing director post, he'll spearhead a new business of deep value public equity investments.
Jefferies & Co has hired Daniel Charney as a managing director and regional sales manager in its San Francisco outpost. He counts UBS, Schwab Capital Markets, and Montgomery Securities among his former employers. Geoff Heyman and Marc Intagliata, who worked with Charney in the past, have come onboard as senior vice presidents
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