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Schonfeld yet to secure $3bn targeted for drawdown fund

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Schonfeld Strategic Advisors, the multi-strategy hedge fund firm born in 2015 out of Steven Schonfeld’s proprietary trading-firm-turned family office, has still not raised the $3bn it has been looking to raise since late last year, according to a report by Bloomberg.

The report cites a letter sent to employees and seen by Bloomberg as stating that: “We haven’t yet formalised a drawdown facility partnership. We remain in active discussions with the initial set of investors we engaged with in Q4.”

The $10bn firm also highlighted that during the first quarter of this year, new parties have expressed interest in the capital raise, which it opted to pursue rather than a a proposed partnership with $63bn multi-strategy hedge fund Millennium Management.

The firm, which suffered from poor performance and client redemptions last year, withdrew from talks with Millennium in November last year, having secured verbal commitments from new and existing investors over the funding, which it intends to hold in a drawdown fund and use as required to replenish and future redemptions and feed into its flagship Strategic Partners fund.

The report cites unnamed people familiar with the matter as revealing that investors in the drawdown fund will receive a 25% revenue share.

Strategic Partners, which has about $8bn in assets, is up 6.25% so far this year, while Schonfeld’s Fundamental Equity money pool has returned 5.9%.


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