A hedge fund launched by former portfolio managers from Citadel is aiming to raise $250 million in new capital, according to people familiar with the matter.
Fundraising Details
The fund, which was established in 2021, is seeking to expand its assets under management amid a challenging environment for hedge funds. The $250 million target would represent a significant increase from its current size, which is estimated at around $1 billion.
According to one source, the fund has already secured commitments from several institutional investors, including pension funds and endowments. The fundraising is expected to close by the end of the year.
Background of Founders
The fund was founded by two former Citadel portfolio managers who managed multi-billion-dollar portfolios at the Chicago-based hedge fund giant. They left Citadel in 2020 to launch their own firm, which focuses on equity long/short strategies.
Citadel, founded by Ken Griffin, is one of the world's largest hedge funds with over $50 billion in assets. The firm has produced many successful spin-offs over the years.
Market Context
The fundraising comes at a time when the hedge fund industry is facing headwinds, with many firms struggling to generate returns and retain investors. However, funds with strong track records and experienced teams continue to attract capital.
According to data from Hedge Fund Research, the industry saw net outflows of $55 billion in the first half of 2023, but top-performing managers have been able to raise new funds.
