Cargill's Black River Asset Management to split into three separate firms

[NEW YORK] Cargill Inc said on Monday that it will spin off Black River Asset Management LLC and split the hedge fund arm into three separate employee-owned firms.

Black River is expected to split into firms to focus on different business streams - fixed income relative value fund, an emerging markets credit fund and a private equity group, Cargill's spokeswoman Lori Johnson said in an email.

The Wall Street Journal reported that two commodities funds focused on agriculture and energy would be moved from within Black River to a business within Cargill.

Cargill, which is one of the world's largest privately held corporations and a top commodity trader, expects to complete these transitions within the next several months.

Black River's board of directors and its senior management team have been conducting a strategic review of the hedge fund's structure and various firm offerings. The management has just completed the full review, Ms Johnson said.

Cargill spokeswoman did not disclose the terms of the deal.

The Financial Times earlier first reported that Cargill is winding down Black River Asset Management, the hedge fund arm it started in 2003.

REUTERS