In September of 2010, MMAPayout reported that Bellator funder and majority stake holder, Plainfield Asset Management (a hedge fund based out of CT) was being investigated by the FBI. The recession, FBI Investigations and whistleblower allegations have caused great hardship on the company over the past few years.
Wall Street Journal now gives us an update on the health of the hedge fund (according to AR Magazine).
Other firms that lost large amount of assets, according to AR, included Max Holmes’s Plainfield Asset Management, whose assets fell by 62.1% to $1.25 billion because of the liquidation of several large privately held positions
Payout Perspective:
Back in 2010, Plainfield Direct, an investment fund managed by PAM, held a 51.6% majority stake in Bellator Sports Worldwide LLC. Before the recession hit the U.S. economy, Plainfield Asset Management had $5 billion in assets under management. According to AR Magazine, Plainfield’s assets fell by %62.1 to 1.25 billion last year due to the liquidation of several large privately held positions. It was also reported today (Nasdaq) that Plainfield Asset Management had offloaded a direct private investment portfolio made up of debt and equity positions to Paul Capital for roughly 150 million.
Hedge fund firm Plainfield Asset Management LLC has offloaded a direct private investment portfolio made up of debt and equity positions to Paul Capital for roughly $150 million, according to people familiar with the situation…The portfolio is made up of 14 companies with two-thirds of illiquid debt positions and one-third equity investments, these people said.
In addition to the sale, the business development company of Plainfield Asset Management is said to be shopping a senior loan portfolio as well. The reason behind the sales is believed to be tied to redemption requests by it’s clients that were blocked for the past year due to the economic downturn.
As of now, it is unknown whether the hedge fund continues to be a majority stakeholder of Bellator.
UPDATE: Plainfield Asset Management is liquidating its hedge funds and will return all capital to investors by June 2012. At that point, a decision will be made regarding the funds future, which includes PAM founder Max Holmes starting up a new fund.
Isn’t $5 billion to $1.25 billion a 75% drop? I only do basic math, not financial math (what are “revolving credit facilities” anyway?), so is there more to it?
MV:
The 5 billion was a “rough” estimate of what the hedge fund had before it was hit by the recession. The 62.1% is just within the the last year (probably based on a number lower than the 5 billion), based on AR Magazine, if that makes any sense.
Yes it does.
UPDATE:
Plainfield Asset Management is liquidating its hedge funds and will return all capital to investors by June 2012. After doing that, the future of the fund will be determined, including starting up a new fund.