SAN FRANCISCO (HedgeWorld.com)–BayStar Capital Management opened another hedge fund specializing in private placement finance and added three new general partners for the fund.
A hybrid between a private equity fund and a hedge fund, the new offering will close at the end of September with US$250 million coming from high-net-worth individuals, family offices, foundations and endowments. The onshore and offshore version of the fund, BayStar Capital II LP and BayStar International II Ltd., will likely complete two deals a month while maintaining eight to 10 active deals at any given time.
Private investments in public equities, often referred to as PIPEs, have been gaining in popularity with investors and are now often used in hedge fund strategies for this reason. BayStar completes transactions with publicly listed companies with market capitalization’s ranging from US$200 million to US$2 billion.
“Slowly but surely, it’s (PIPEs) becoming part of the Wall Street lexicon,” said Lawrence R. Goldfarb, managing member at BayStar Capital.