Ex-DB Trader Gets $50M in Startup Cash from Grosvenor Capital Management
One of the world's largest independent alternative asset management firms Grosvenor Capital Management has backed the amount of $50 million for Deutsche Bank veteran Troy Dixon's fledging hedge fund.
Troy
Dixon, who managed a group of 70 at Deutsche Bank until resigning in
2013, got off the ground with his new structured-credit-focused Hollis
Park Partners LP last month, people familiar with the firm said.
Mr.
Dixon is among hedge fund managers looking to take advantage of
anticipated volatility in the fixed-income market after years of
relatively placid trading encouraged by low interest rates. The vast
majority of its portfolio comprises so-called agency bonds backed by a
government entity.
Mr. Dixon, 43, named the firm after his childhood neighborhood in Queens. He now lives in Manhattan.
Hollis
Park started with roughly $200 million, including $50 million from the
Chicago-based Grosvenor, one of the world’s largest investors in hedge
funds. There is an arrangement for the firm to buy out Grosvenor’s
interest after seven years, making it an unusually long deal for startup
hedge funds.
A spokesman for Grosvenor confirmed the existence of the new deal.
Source: Wall Street Journal