Ken Griffin’s Citadel Plans 51-Story Office Tower on Park Avenue (The Real Deal)
New details are emerging on hedge fund billionaire Ken Griffin’s planned office skyscraper in Midtown. Griffin’s Citadel is eyeing a 51-story, Norman Foster-designed tower at 350 Park Avenue, where it will redevelop properties leased from Steve Roth’s Vornado Realty Trust and Rudin Management, people familiar with the matter told Bloomberg. Citadel would occupy about 54 percent of the 1.7 million-square-foot building, which would rise to 1,350 feet. Plans for the tower, which would replace Vornado’s 350 Park Avenue, where Citadel keeps some of its existing New York offices, as well as Rudin’s 40 East 52nd Street, were confirmed by Vornado last month. Initial proposals say the building is expected to be completed in 2032.
Angelo Gordon Launches New $800m Unit to Target Growing Private Debt Demand (Opalesque)
Credit and real estate investment major Angelo Gordon & Co. has launched AG Twin Brook Capital Income Fund (TCAP) with more than $800m in total assets. The $52bn alternative investment firm said in a press release that TCAP is a non-traded business development company (BDC) that has approximately $530 million in equity and over $1 billion in total investment commitments at launch. Effective January 1, TCAP completed its merger with AGTB Private BDC, with TCAP as the surviving company; AGTB Private BDC, TCAP’s predecessor vehicle, was an affiliated, privately offered BDC with the same investment manager and investment objective as TCAP, the release noted.
Investor Ubben Takes 0.8% Stake in Bayer, Boosting Share Price (Reuters)
Activist investment fund Inclusive Capital Partners, run by hedge fund veteran Jeffrey Ubben, said on Monday it had acquired a 0.83% stake in Bayer, as the German drugs and agriculture group continues to suffer from a weak market value. Inclusive Capital said in a statement it had acquired 8.18 million Bayer shares as of Jan. 5, which works out at about 407 million euros ($435 million) based on that day’s closing price.
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Hedge Fund Fees Fall to Lowest Level Since 2008 Financial Crisis (Hedge Week)
Hedge fund fees declined slightly in Q3 2022, with the average industry-wide management fee declining 1 basis point from the prior quarter to an estimated 1.35%, according the latest HFR Market Microstructure Report. The average incentive fee, meanwhile, fell by 4 bps to 16.01%, with both estimated fees representing their lowest levels since HFR began publishing these estimates in 2008. For funds launched in Q3 2022, average management fees increased by 3 bps from the prior quarter to an estimated 1.35%. Average incentive fees for funds launched in the third quarter of 2022 was estimated at 17.23%, representing a decline of nearly 70 bps from the prior quarter though remaining above the overall industry-wide average.
Hedge Fund Takes On Toughest ESG Market With Long-Short Bet (Bloomberg)
A European ESG classification that’s proved too strict for many of the world’s biggest asset managers has just been embraced by a hedge fund manager in London. Trium Capital LLP, whose ESG Emissions Impact Fund outperformed 96% of peers last year, has launched a long-short strategy it says will be green enough to merit the European Union’s top environmental, social and governance designation, known as Article 9.
