CNNMoney.com- A fund of Goldman Sachs Group Inc. (GS) said Monday it has taken a 20% stake in London-based hedge fund operator Capula Investment Management, in the latest move by a bank to tap into hedge funds’ lucrative fees through part-ownership.
The purchase was made by Petershill Fund Offshore LP a private investment fund that is part of Goldman Sachs’ asset management unit. The Petershill fund previously took a stake of just under 10% of London’s Winton Capital Management in late July.
Terms of the transaction weren’t disclosed, but hedge fund businesses are typically valued at between 10% and 15% of assets under management. Based on Capula’s $3 billion in assets under management, that implies a rough price of around $60 million to $90 million for Goldman’s 19.99% holding.
