Paul Singer’s Elliott raked in record US$13b last year

PAUL Singer’s Elliott Investment Management raised US$13 billion last year in its biggest-ever capital haul. The firm gathered the cash commitments over two fundraising rounds that closed in 2022, according to an investor letter seen by Bloomberg.

It is unclear when Elliott began raising the capital. A representative for the firm declined to comment.

Elliott uses a drawdown method, meaning it secures commitments from investors but calls on that cash at a later date. 

The firm also told investors that Jaime Hobbeheydar, head of investor relations and marketing, is retiring after 14 years at Elliott. 

Hobbeheydar, 52, will be succeeded by Carmen Thompson, 55, who oversaw the allocation of alternative investments for Rice University’s endowment.

The cash raise came the same year the Federal Reserve finally began hiking interest rates to tackle rising inflation, ending an era of cheap credit.

The firm may see investing opportunities, as Singer, 78, has long warned of an ugly end to the Fed’s easy-money policies. In a February 2021 letter to investors, he pointed to “trouble ahead” due to the combination of high valuations, too much leverage in capital structures and low-quality securities.  

As of June 30, Elliott managed almost US$56 billion. Its multi-strategy hedge fund gained 5.9 per cent last year, according to a person familiar with the matter. Elliott has lost money in only two years since its 1977 debut. 

In 2017, Elliott raised US$5 billion in just 24 hours to have cash on hand in case asset prices turned volatile and investor confidence faltered. 

SEE ALSO

Credit cracks widen with distressed debt ballooning

BEA selling life insurance arm in US$653m deal with AIA

Michael Dell, Paul Singer, Facebook co-founder latest to join SPAC bandwagon

The firm sought to raise another US$5 billion in 2019, the Financial Times reported then. BLOOMBERG