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Goldman's Petershill takes minority stake in hedge fund LMR - source

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By Reuters

By Maiya Keidan

LONDON (Reuters) – A private equity fund run by Goldman Sachs Asset Management (GSAM) <GS.N> has bought a minority stake in multi-strategy hedge fund firm LMR Partners, one source familiar with the matter said on Monday.

The GSAM fund bought a stake of between 10 percent and 20 percent in LMR for an undisclosed sum, the source said.

A spokesman for LMR Partners, which has offices in London, Hong Kong and New York, declined to comment. A spokesman for Goldman Sachs also declined to comment.

LMR Partners, which uses both computer-driven and discretionary trading styles, has $5 billion in assets under management, its website said.

The GSAM fund is part of its Petershill range of funds, launched in 2007 to take stakes in alternative asset managers. While Petershill I has already closed, GSAM’s Petershill II and Petershill PE funds are both still active.

The Petershill funds currently has $4.5 billion of investments in alternative asset managers, with previous investments including macro hedge fund Caxton Associates, credit-focused Knighthead Capital Management and equity-focused Pelham Capital.

Petershill has also previously invested in high-profile British quantitative hedge fund firm Winton Group, among others.

LMR Partners’ $2.7 billion LMR Fund Ltd made gains of 2.8 percent in the year to Aug. 10, after returns of 10.2 percent in 2017, data compiled by HSBC showed.

(Reporting by Maiya Keidan. Editing by Jane Merriman)