City Of London
Hedge Funds That Took Abramovich’s Billions Have No Way Out
- Cayman rules say firms can manage money but can’t collect fees
- Concord steered oligarch’s fortune to hedge funds, PE firms
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When Concord Management came calling with the promise of checks for as much as $100 million, more than 100 hedge funds and private equity firms jumped at the offer.
Most of the $6 billion behind Concord belongs to Roman Abramovich, who earlier this month was sanctioned by the European Union and the U.K. as part of sweeping penalties against billionaires believed to be close to Russian President Vladimir Putin. Now the firms are stuck: Their clients are asking questions, they can’t get rid of the tainted money and they can’t immediately collect fees on it either.