Two Sigma to Spin Out Impact Arm as Internal Frustrations Simmer
- Some staff disappointed by fundraising support from parent
- Two Sigma to invest up to $75 million in new firm’s next fund
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Two Sigma Investments, the $60 billion quant giant, plans to spin out its private equity impact-investing unit amid internal discontent.
Two Sigma Impact’s inaugural fund raised $677 million, short of its $750 million target, according to people familiar with the matter. That occurred during a challenging environment as investors who allocate to funds struggled with liquidity. Still, some employees were disappointed about the extent of external fundraising support they received from the parent company, a person familiar with the thinking within the unit said.