Despite calls from Congress to further separate banks from hedge funds via the so-called “Volcker Rule,” Goldman Sachs has gone ahead and purchased a minority stake in Level Global Investors LP, a firm owned by SAC Capital alumnus David Ganek.
Goldman Sachs’s Petershill Fund Offshore LP, a $1 billion fund set up to buy minority stakes in hedge funds, won’t get any management or investment decision-making role with the acquisition, according to a letter Ganek sent to clients yesterday. New York-based Level Global said it will use the proceeds from the sale to help attract and retain top talent.
Ganek, an alumnus of Steven A. Cohen’s Stamford, Connecticut-based SAC Capital Advisors LLC, founded Level Global in 2003. The firm has 64 employees, of which 25 are investment professionals. Petershill has interests in three London-based funds, Capula Investment Management LLP, Winton Capital Management Ltd. and Trafalgar Asset Managers Ltd., as well as in Greenwich, Connecticut-based Shumway Capital Partners LLC.
Goldman has, obviously, declined to comment.
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