Guggenheim Said to Sell Hedge Fund to Group of ManagersMary Childs and Kelly Bit
Guggenheim Partners sold its multistrategy hedge fund to a group including the former co-head of Royal Bank of Canada’s capital-markets division. Terms of the transaction weren’t disclosed.
Mark Standish, the former co-head of RBC Capital Markets, has teamed with Loren Katzovitz and Patrick Hughes, managing partners of the Guggenheim Global Trading alternative investment management business, according to a Guggenheim statement on Monday. The sale was reported earlier by The Wall Street Journal.
The new firm’s name is Deimos Asset Management and is expected to start as an investment adviser on or about Feb. 1, according to a filing with the U.S. Securities and Exchange Commission dated Jan. 14. Ares Management LP has given Deimos an equity investment, according to the statement.
Standish was to be a principal of Taursa Capital Partners, a hedge-fund spin-off of RBC’s proprietary trading business, in which the bank considered investing as much as $1 billion. The plan was scrapped after facing resistance from the Federal Reserve, two people with knowledge of the matter said in October.
Royal Bank said in December 2013 that Standish was leaving in 2014 and in the interim would help the company’s trading businesses comply with new U.S. regulations that prompted it to exit about half its proprietary-trading strategies at the end of last year. The lender had been reviewing possibilities for the unit since December 2013, when the U.S. released a final version of the Volcker Rule, which restricts banks’ ability to trade with their own money.
Guggenheim Global Trading is an alternative investment management business within Guggenheim Partners with more than $600 million under management, according to the firm’s website.