How to build a hedge fund with equity financing
Capital One is trying to raise more than $100 billion from a group of investors to fund its hedge fund.
The financing is aimed at providing capital to finance companies that are going through tough times.
The company says it has secured $70 billion in loans from more than a dozen banks, including Bank of America and Barclays Capital.
It is the first hedge fund to be backed by a bank, according to Capital One spokeswoman Mary Loomis.
The new fund, called Equity, is expected to be ready to fund some of the largest hedge funds in the world.
“This is the most sophisticated investment opportunity in the hedge fund industry, and Capital One believes it can provide significant value for investors in a challenging economy,” she said.
This isn’t the first time Capital One has tried to finance a hedge funds.
In 2014, it said it would fund a hedge-fund called Alpha Capital to fund $150 billion in new venture capital.
Capital One also backed a fund in 2013 called the Capital One Investment Fund.
Capital One’s new fund has an estimated valuation of more than half a trillion dollars, according the company.
Capital One has a history of making large investments in risky securities.
In 2012, it was the largest investor in a failed $5.2 billion takeover of the pharmaceutical company Valeant Pharmaceuticals by UnitedHealth Group, according an SEC filing.
More recently, Capital One had a $2.9 billion loan to fund a venture capital fund called the American Equity Fund that has focused on investing in companies that have suffered from the financial crisis, including the auto industry, according a SEC filing in 2016.
As a hedge, Capital Toone’s funding will help it take advantage of the company’s “deep, networked capital” and its “unique, global expertise,” Loomi said.
“We think it’s a great opportunity for investors to look for a way to support a hedge to fund the company, and this is an investment that we feel very comfortable with.”
This is one of the biggest fund openings in a year, according to Capital One.
It’s the first fund to go public in the company capitalization is currently $50 billion, with the other funds being invested in the company by a group of American banks, according Capital One spokesman Mary Loomischen.
A recent filing by Capital One showed that the fund has a market cap of about $70.7 billion.
That’s up from about $57.7 million at the start of the year, when the fund was still trading at less than $1.50.
It will take Capital One about six months to make a decision about whether to fund it or another hedge fund, according its website.
At this point, the fund isn’t ready to sell any of its securities, which are currently valued at more than 2.5 times the value of the fund’s assets.
Its investment will likely help Capital One survive as it is a smaller company with fewer than 5,000 employees, according company spokesman John Nardelli.
Investors will be able to buy into the fund as soon as it goes public, Capital On Nardelli said.