Hundred-Million-Dollar-Hall Looking For New Billions

Author:
Publish date:

Castle Hallenstein: Home Sweet HomeCitigroup's former $100 million man has been freed from the tyranny of life as a serf under Czar Kenneth I. But if he wants to keep the nine-figure bonus checks rolling in under his new masters at Occidental Petroleum, he's gonna need some new patrons.
Now, Citi chose to sell Hall's business, Phibro, to Occidental for a few nickels rather than simply spin it off as an independent hedge fund. Still, Hall knows where the money is (a lot of it is hidden in the keep of his German castle) and he's asked the Blackstone Group to find it.


Blackstone's placement agency, Park Hill Group, is looking to drum up business for Phibro's commodity-trading fund, specifically from hedge fund investors. That way, Hall has plenty of money from which to earn his 2 and 20. And he'll need it if he's to keep up with Cohens on the auction circuit: Hall and Phibro's other big earners agreed to have a good chunk of their future bonuses deferred.
Phibro reaches out to hedge fund investors [MarketWatch]

Related

Phil Falcone Will Borrow Hundreds Of Millions Of Dollars From Any Gated Investor Fund He Pleases

Phil Falcone, as some of you may know, has made some mistakes in the last couple years. Pouring his investors' money into a wireless start-up that may or may not ever get off the ground. Offering those who wanted out illiquid LightSquared equity instead of cash. Not getting his wife a driver for party-time.  If you're wondering why we haven't mentioned the time he borrowed $113 million from a gated fund in order to pay personal taxes, which he had not set aside enough money to cover, it's because Phil doesn't count it as a mistake, regardless of what you, or the SEC, or anyone else says. Hedge-fund manager Philip Falcone and his firm, Harbinger Capital Partners LLC, formally signaled their intent to seek the dismissal of fraud charges filed against them earlier this year by securities regulators, according to people familiar with the case. In June, the Securities and Exchange Commission filed civil charges accusing Mr. Falcone of putting his own interests, including maintaining a "lavish lifestyle," ahead of those of Harbinger's investors. The agency accused Mr. Falcone, Harbinger and Harbinger's former operating chief, Peter Jenson, of misleading investors and an outside law firm when Mr. Falcone took out a $113.2 million loan in 2009 from a Harbinger fund to pay his personal taxes, even as other investors in the fund were prevented from pulling their money. Lawyers for Mr. Falcone and Harbinger sent a letter to Judge Paul Crotty of U.S. District Court in Manhattan Friday, the deadline for responding to the SEC's complaint, saying they intended to seek dismissal, the people said. The letter also summarized arguments for the dismissal. Mr. Jenson also filed a letter Friday through his lawyers saying he intended to seek dismissal of the complaint. Representatives of Mr. Falcone and Harbinger have said before they planned to fight the allegations. In negotiations with securities regulators leading up to the charges, they had argued that Mr. Falcone and Harbinger were simply following sound advice from their legal counsel. Which, for those who missed it, was: “[L]ending money to principals is not part of the fund’s investment program” and "a loan . . . will never be a good idea" and "[We are] unequivocally against the loan idea for a number of reasons." Falcone To Seek Case's Dismissal [WSJ] Earlier: Phil Falcone’s Alleged Piggish Behavior Made Him Some Enemies