Tyrus fund raises more than $800m
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Tyrus Capital, the hedge fund set to be launched on Monday by former Deephaven manager Tony Chedraoui, has raised more than $800m (€543m, £487m) from investors in one of the clearest signs to date of a resurgence of confidence in the hedge fund industry.
Since the collapse of Lehman Brothers, the number of hedge fund launches has fallen far from its peak. In the first half of 2007, there were more than 180 fund launches in Europe alone but the number fell to fewer than 50 in the first six months of this year, according to data from EuroHedge.
In spite of a recovery in performance and net investment over the past 12 months, the size of launches has also remained muted, with most raising $100m-$200m. At the height of the boom, it was not untypical for hedge funds to raise $1bn in start-up capital.
Some of the most prominent traders and hedge fund teams have struggled to launch new vehicles in the current environment. MCapital, a distressed debt fund set up by Mark Devonshire, the former head of Merrill Lynch’s fixed-income proprietary desk, had to delay launching three times because of difficulties in securing capital.
The deadline for initial investor subscriptions to Tyrus closed on Friday evening, when the fund’s management was still waiting on a final figure. According to people close to the fund, interest far exceeded expectations.
Tyrus had been expected to raise about $500m – which would have been sufficient to make it the largest hedge fund launch this year by a substantial margin.
The fund is understood to be expecting a further $300m in subscriptions this month and could end the year with $1.4bn under management.
Tyrus will specialise in event-driven strategies that seek to make money as a result of specific corporate events or announcements, such as rights issues, mergers or management changes.
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