Soros to spin off buyout unit

Published on: "Private Equity Online"

George Soros announced he is handing over greater control of his $12.8b Soros Asset Management firm to his sons, and is spinning off his real estate, credit and private equity divisions.

Billionaire George Soros on Monday announced that he is handing over greater control of his $12.8 billion (€10.4 billion) money management firm, Soros Asset Management, to his sons, Robert and Jonathan. As part of the announcement, Soros also said his real estate, credit and buyout investment units would be spun off.

Reportedly, in a memo sent to investors and staff, Soros said that the spin-outs are an effort to bring the firm back to its core activity as a hedge fund manager.

The real estate unit, under incumbent chief Richard Georgi, will be renamed Grove Capital. Steven Mnuchin, who heads the credit team, will now be chief of Dune Capital Management.

The memo also reportedly said Soros may spin off the buyout division, Soros Private Equity, which is led by Frank Sica. However, an agreement has not been made and Sica will remain with Soros Asset Management for now. Soros Private Equity most recently made headlines in May when it agreed to help Jaime Bergel, formerly managing director of Goldman Sachs and chairman of Merrill Lynch for Spain and Portugal, and Carlos Tejera, a high-profile Spanish financier, launch a new private equity vehicle focussing on investment opportunities in Spain and Portugal.

A month prior, Miltos Kambourides, former partner at Soros Real Estate Partners, launched Athens-based Dolphin Capital Partners, which is targeting €100m for a debut private equity fund focused on leisure-integrated real estate opportunities in Greece, Cyprus, Turkey and Croatia.

Source: "Private Equity Online"