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SAC Capital's Private Equity Guys Are Raising Cash, Leaving The Mothership

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Frank Baker, Peter Berger and Jeffrey Hendren need $400 million for their new buyout shop, which will be independent of SAC though Mr. Cohen will get a piece of the action 'cause that's how he rolls.

The new outfit, known as Siris Capital, is looking to raise $400 million for a fund that will make buyout investments in technology, telecommunications and health-care services, although other industries will be considered, these people said. Cohen, who acted as sole backer of deals executed by the private capital group, will help support the debut vehicle, Siris Partners II LP, these people said. It couldn't be determined how substantial his stake will be.

Siris co-founders Frank Baker, Peter Berger and Jeffrey Hendren worked at private equity firm Ripplewood Holdings LLC for more than a decade before joining S.A.C. Capital in 2007. The three men co-founded the hedge fund manager's private capital group which they planned to use as a stepping stone to raising a third-party fund.

While part of S.A.C. Capital, the private equity group executed three deals including investments in Cosmos Bank Taiwan (2837.TW), network infrastructure company Airvana Inc. and MedQuist Holdings Inc. (MEDH), a provider of clinical documentation services for the U.S. health-care system. MedQuist listed on Nasdaq this month.

SAC Capital's Private Equity Team Seeks Money For New Fund


Friendlier, More Flexible SAC Capital Now Making It Easier For Clients To Leave (Though They Hope You'll Stay!)

Time was, SAC Capital didn't give a rat's ass what outside investors thought of it. No lip service was paid, no gestures of friendliness offered. Wanted to get your money out ASAP? SAC didn't give a fuck. You'd wait a year and you'd like it (and wouldn't dare think about asking for entree again). Now, though, thanks to the work of a former employee named Mathew Martoma, SAC has been forced to show a softer, friendlier, and frankly vaguely unnerving side. Instead of verbal abuse, employees have received pay raises. Instead of quarterly redemptions, this very uncharacteristically accommodating offer:

Bonus Watch '13: SAC Capital

Back in December, a bunch of recruiters made the bold claim that following the government's charges against former portfolio manager Mathew Martoma, SAC Capital employees were, if not giving them the time of day, at least waiting a few seconds longer before hanging up the phone. At another firm, the turn events probably would have been cause for concern that the staff would be abandoning ship in short order. Since we're talking about SAC, though, we figured not only would The Big Guy & Co not be concerned about the prospect of mass resignations but would take the opportunity to remind people that this is SAC Capital and at SAC Capital, they don't receive resignation letters, they only issue pink slips, lest anyone be getting any ideas. So you can imagine our shock and horror to find out this happened: