Report: TPG Hedge Fund Subpoenaed
The U.S. Securities and Exchange Commission subpoenaed
Though TPG-Axon was the only hedge fund mentioned that is sponsored by a buyout fund, it will be interesting to see if others are ensnared given the breadth and scope of the investigation, which involves the SEC, the New York Attorney General’s office and the FBI. For a hedge fund trader under the same umbrella as a buyout shop, the temptation to seek tips from the buyout side of the firm must be enticing.
Dynegy’s two largest shareholders, Carl Icahn and
Dynegy will now likely seek another buyer, sell assets or restructure, Reuters, a sister newswire service of Buyouts, reported. Buyout shops that compete with Blackstone could follow up with their own bids, a source told Reuters in the same report.
Blackstone, in a Nov. 23 statement, wished the company the best in its effort to find a new buyer.
EU Approves New Regs
On Nov. 11, the European Parliament approved the Alternative Investment Fund Managers Directive, a new regulatory regime that will affect how U.S.-based buyout fund managers solicit investors in the European Union.
The big question with the Directive was how hard it would be for fund managers not based in the European Union to market their funds to investors in EU member states, as earlier versions of the legislation would have made it virtually impossible. Generally speaking, non-EU fund managers will be allowed to market their funds so long as they comply with additional regulatory requirements pertaining to transparency and asset stripping, among others. The new regulations begin in 2013.
In the longer term, U.S. fund managers may need to register with, and be supervised by, an EU financial services regulator in order to market funds to EU investors, according to attorneys at Kirkland & Ellis.