Thursday 3 March 2011

Libyan-Backed Hedge Fund’s Expansion Plans Challenged by Tripoli Fighting - Bloomberg

Former Bear Stearns Cos. executive Frederic Marino started an $800 million hedge fund with the backing of Muammar Qaddafi’s government. Now his plan to attract new investors is being threatened by fighting in the streets of the Libyan capital of Tripoli.

London-based FM Capital Partners Ltd., founded in 2009 with financing from a Libyan sovereign wealth fund, was preparing to raise money from other outside investors this year for the first time, according to two people briefed on the plans who declined to be identified because the firm is private. Those plans may have to be postponed after governments froze Qaddafi’s assets and global leaders rebuked his violent crackdown on dissidents, hedge-fund industry consultants said.

Libyan money is “a huge hindrance” to soliciting new investors, said Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based consulting firm that advises hedge funds and investors. “Once there is a transition to a more stable government, their asset base should be a positive in helping them build the business.”

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