Blackstone Backs Ex-JPMorgan Money Manager’s New Hedge Fund
Blackstone Backs Ex-JPMorgan Money Manager’s New Hedge Fund
(Bloomberg) -- Blackstone Group Inc. is providing the initial investment for a hedge fund run by former JPMorgan Asset Management money manager Fahad Roumani.
Roumani’s Palm Lane Capital has received $150 million from Blackstone, according to a person familiar with the matter. The London-based credit hedge fund is expected to start with the seed capital and money from other investors next month, said the person, who asked not to be identified because the information is private.
Roumani and a spokesperson for Blackstone declined to comment.
Winning backing from heavyweights such as Blackstone is key for hedge-fund startups these days, as investors desert the industry. More than $55 billion left hedge funds in the first half of 2020, the most in at least a decade, according to data tracker eVestment. Firms shuttered in the first quarter at the fastest pace in more than four years, while the number of new launches slumped to near record lows.
Roumani previously ran a $1 billion hedge fund for JPMorgan and invested in global credit markets. That fund gained 62% between 2011 and 2018 with no down year, before being liquidated by JPMorgan after the bank abandoned a plan to spin it off.
Hedge fund seeders provide significant, long-term initial capital to startups in exchange for getting a share from their revenues.
Blackstone’s hedge fund business has been focusing on seeding new funds from well-known managers with strong track records. It previously provided capital to startups run by Michael Phelps, a former head of European credit at BlackRock Inc., and to Himanshu Gulati, a former head of U.S. distressed credit at GLG Partners.
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