Monday April 28, 10:04 AM
Brevan Howard to proceed with global BH Global IPO; seen raising $500 mln UPDATE
LONDON (Thomson Financial) - Brevan Howard Asset Management LLP said on Monday that it will go ahead with the second listing of a fund of hedge funds feeder fund, planning to raise about $500 million.
BH Global Ltd. will invest solely in the Brevan Howard Global Opportunities Master Fund Ltd, which will invest in a number of Brevan Howard's hedge funds.
Up to 40 percent of the assets of this fund will be invested in the firm's flagship global macro hedge fund, the Brevan Howard Master Fund, with the balance being invested across the Brevan Howard Equity Strategies Master Fund, the Brevan Howard Asia Master Fund, the Brevan Howard Emerging Markets Strategies Master Fund and the Brevan Howard Strategic Opportunities Fund.
In March 2007 the firm raised 770 million euros - well below the initial target of 1 billion euros - from the listing of BH Macro Ltd, the first hedge fund feeder to list on the London Stock Exchange (LSE: LSE.L - news) .
BH Macro invests in the Brevan Howard Master Fund Ltd, which at the time of BH Macro's listing had $11.7 billion of assets.
An additional $131 million was raised in a placing of BH Macro shares last October.
Brevan Howard said that senior Brevan Howard personnel and some of BH Global's own directors intend to invest in the Guernsey-domiciled, closed-ended investment company.
The firm added that it will seek admission for BH Global to the London Stock Exchange's main market, and is considering an application for a listing of BH Global's U.S. dollar shares on the Dubai International Financial Exchange.
In a sign that investor appetite has not been lost in spite of the credit crunch, Financial Risk Management said last week it plans to list a closed-ended fund of hedge funds on the London Stock Exchange in June while Thames River Capital said it was looking to raise 200 million pounds from a 'C' share offering in its opportunistic multi strategy fund, Thames River Hedge+.
However, BlackRock (NYSE: BLK - news) only managed to raise $275 million of its $500 million target for the listing of BlackRock Absolute Return Strategies, a fund of hedge funds feeder last Thursday.
Brevan Howard is an independent alternative asset manager founded in 2002 and as at 31 March 2008, managed funds with net assets of approximately $23.8 billion.
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