A team of proprietary traders, led by Daniele Benatoff and Ariel Roskishas, at Goldman Sachs (GS) are leaving the investment bank to set up a new hedge fund, sourced a $300 million investment from Brummer & Partners. Brummers & Partners, a European hedge fund, is believed to have been responsible for providing the capital to help fund the new launch.
The news arrives as many banks look to restructure their proprietary trading units in the wake of regulations approved by the authorities in the US which will see curbs introduced on the amount of their own funds banks can bet with.
Goldman’s Partners are said to have gotten their first look at the new guidelines (or business practices) during a recent off-site, and the firm is expected to publish the report in full on its website later today.
Finally, The Financial Times reports that members of Goldman’s Principal Strategies desk, its last big prop trading unit, are said to have already secured $300m funding to start a new hedge fund in the second-quarter of this year.
The new fund, which is thought to have bagged the $300m from hedge fund Brummer & Partners, will be based in London, and will be led by senior members of the Goldman team Daniele Benatoff and Ariel Roskis.
Congress approved the Dodd-Frank financial act in the summer of 2010 as part of a bid to reduce the amount of risk US financial institutions are exposed to.