FTVentures to buy hedge fund services provider PlusFunds

Source: PlusFunds Group

PlusFunds Group, Inc., a leading innovator of hedge fund services and products, and FTVentures, a private equity firm in the business services and software sectors, announced today that they have reached an agreement to sell PlusFunds' business to a new entity formed by FTVentures.

To facilitate this transaction, PlusFunds has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court in the Southern District of New York. The sale will be made under the supervision of the U.S. Bankruptcy Court in New York in accordance with Section 363 of the Bankruptcy Code.

FTVentures, one of the first private equity firms to concentrate on growth companies offering meaningful solutions to the financial services industry, brings deep domain expertise and an extensive Global Partner Network, featuring 38 of the world's leading financial services institutions. The firm collaborates actively with this financial industry network to help its portfolio companies develop and expand commercial relationships. FTVentures' experience in the investment management arena includes investments in Financial Engines, an investment advisor with $3 billion under management which provides personalized investment advice and portfolio management to 401(k) participants, and PowerShares Capital Management, a pioneer in the exchange traded fund (ETF) industry. PowerShares Capital Management was acquired in January by AMVESCAP.

"PlusFunds' distinct capabilities provide investors unmatched access to a broad range of hedge fund managers across numerous investment styles, including the SPhinX suite of hedge fund index products," said Brad Bernstein, FTVentures Partner. "PlusFunds' innovative platform is engineered specifically to give hedge fund investors a rare level of transparency, independent oversight and control. We look forward to working closely with the PlusFunds' team to build on its solid foundation and to continue to cultivate successful partnerships with financial services institutions."

PlusFunds also announced today that David Peress, a Principal of XRoads Solutions Group, has been appointed as the Chief Restructuring Officer of PlusFunds. Peress has over fifteen years of experience in the corporate reorganization, restructuring and turnaround industry. He will manage all aspects of PlusFunds' restructuring process, including the asset-sale process.

"The sale of the PlusFunds business to FTVentures is great news for investors looking for additional opportunities to invest in the hedge fund space," said Peress. "FTVentures will bring the expertise, industry connections and resources necessary to stabilize operations, promote asset growth and pursue PlusFund's growth strategy through strategic partnerships with global financial institutions."

The sale to FTVentures is subject to Bankruptcy Court approval and other conditions. The company has asked the court to approve certain noticing and bidding procedures with the anticipation that a sale will close by mid to late April 2006. Other qualifying bidders will have an opportunity to submit bids for PlusFunds through a court-supervised competitive bidding process.

Comments: (0)