'If you are big and successful, people want to do business with you'

Hedge Fund

When hedge fund managers venture into new areas, they typically move gradually. Not Michael Platt, co-founder of BlueCrest Capital Management.

Bloomberg Businessweek reports that to expand from fixed-income investing into stocks, he negotiated a $750m loan from 16 banks in July, allowing his firm to hire at least 25 money managers and provide them with capital to start trading immediately, according to two people with knowledge of the loan who asked not to be identified because it isn’t public.

'I can’t think of any other examples like this,' says Daniel Celeghin, a partner at Casey Quirk & Associates, which advises hedge funds on fundraising. 'It’s just the nature of finance, where if you are big and successful, people want to do business with you'.

After doubling assets under management over the past five years to $34.2bn, the British-born Platt, who resides in Geneva, presides over the third-largest hedge fund firm in Europe. He made his first hire for stocks in March, adding Christian Dalban from Nomura Holdings to build and oversee teams of traders that would be based in London. Jonathan Larkin joined from Nomura in April to do the same in New York. BlueCrest also added at least three money managers and two analysts from SAC Capital Advisors, which is turning itself into a family office to manage founder Steven Cohen’s $9bn fortune. Platt, 45, declined to be interviewed.

BlueCrest, has offices in several of the world’s financial capitals, and has boosted its global head count by 75% to more than 580 since the start of 2010. 

To access the complete Bloomberg Businessweek article hit the link below:

Hedge Fund BlueCrest Borrows to Bet Big on Stocks

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