Ex-SocGen bankers form new Nexar hedge fund
PARIS (Reuters) - Dozens of leading bankers at Societe Generale have left to set up a new hedge fund, against a backdrop of pressure on French banks to cut bankers' bonuses.
The new fund, called Nexar Capital, officially launched on Wednesday. Nexar said it would have over 30 staff based in New York and Paris and had received financial backing from U.S. private equity firm Aquiline Capital Partners LLC.
Former SocGen (SOGN.PA) hedge fund manager Arie Assayag will be Nexar's chief executive. Assayag had announced his departure from SocGen in April.
He will be joined by a host of his former SocGen colleagues including Eric Attias, who will be Nexar's chief investment officer, and Bernard Kalfon.
French President Nicolas Sarkozy has put pressure on top French banks SocGen, BNP Paribas (BNPP.PA) and Credit Agricole (CAGR.PA) to cut back on bonus payments.
A source within SocGen said this political climate could encourage top financiers to leave large banks and go off and set up their own outfits where they can dictate their own remuneration policies.
"SG have been cutting the capital allocated for many of the hedge fund businesses within the bank. With less capital to run, their remuneration will be lower," said the source.
Nexar said in a statement that Aquiline would support the expansion of Nexar's investment platform and distribution, and would also help fund possible acquisitions made by Nexar.
Aquiline was set up by Jeffrey Greenberg, who is the son of the former head of U.S. insurer AIG (AIG.N) Hank Greenberg.
Nexar said Douglas Siekierski will be its chief operating officer while Paulo Baia will be head of research. Patrick Palffy will be Nexar's European chief operating officer.
(Reporting by Sudip Kar-Gupta; editing by Simon Jessop)
- Tweet this
- Share this
- Digg this