New Star Asset Management
New Star Asset Management | Hedge Fund Notes
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Resource #1: (12.6.08) London-based New Star Asset Management Group said a restructuring of its balance sheet that will result in £240 million (US$352 million) of its £260 million (US$382 million) of gross debt being converted into equity.
New Star said it has reached agreement in principle with its bank syndicate on the terms of a proposed capital reorganization that will leave it able to concentrate on its investment performance and client service as an unlisted company. It plans to de-list from the London Stock Exchange, where it floated three years ago, as part of the restructuring. source
Resource #2: (11.26.08) New Star Asset Management has cut a top executive in its bid to slash £20 million (US$29.9 million) in costs.
Stephen Whitaker, co-chief investment officer and manager of the firm’s £343 million (US$512.1 million) UK Growth Fund, has left the firm. According to New Star, Chairman John Duffield “asked Stephen to leave after a prolonged period of underperformance.” Whitaker had worked at New Star for more than six years.
Whitaker is the first fund manager to leave the firm in a reshuffle designed to save £20 million in costs annually, but dozens are expected to lose their jobs at the London firm in the next few weeks. All told, some 15% of the firm’s employees are expected to be cut. Source