Lone Pine Veteran Eisenstein Starts Hedge Fund With $350 Million

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Lone Pine Capital veteran Paul Eisenstein has started his own hedge fund with about $350 million.

Vetamer Capital Management, which launched in January, invests in public and private financial-technology companies, according to people familiar with the matter. They include digital-commerce, insurance-technology and cryptocurrency-infrastructure firms.

The fund’s private investments will focus on growth-stage companies that Vetamer expects could pursue an IPO in about three or four years, the people said. The new firm is expected to allocate about a third of its assets to such private wagers, and so far has made three investments. It is expected to make several more, in both U.S. and international markets, by year-end.

Hedge funds are increasingly blending stock-picking with venture capital wagers amid high valuations and a hot market for initial public offerings. Recent launches including XN and Untitled Investments have adopted the hybrid model, and some of the industry’s biggest names including Coatue Management and Point72 Asset Management launched new venture-focused funds in recent years.

Lone Pine has been pushing into more private wagers too, still capping the total amount of such investments at 5% of its funds’ assets. Eisenstein spent 13 years at the firm, as an analyst and later managing director and partner. He focused on public and private investments in financial services companies, before leaving the firm in 2019. San Francisco-based Vetamer started trading his own wealth in mid-2020 and opened up to outside cash this year.

“Paul has been an important contributor to our results in financial services and is a highly respected colleague,” Lone Pine said in its third-quarter 2019 letter, when it told investors of Eisenstein’s upcoming departure. “We plan to stay in close touch and hope that there will be areas of investment collaboration in the future.”

It is unclear if Lone Pine has backed Vetamer. A spokesman for Vetamer declined to comment.

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