D. E. Shaw offers investors chance to unload side pocket exposure
By Simone Foxman
Mon Mar 31, 2014
Investors get one-time option to participate.
D. E. Shaw & Co. is offering a deal that will
allow investors in the illiquid side pocket holdings of the
firm's multistrategy Composite Fund to unload their exposure by
July without exposing them to substantial tax ramifications,
according to a letter to investors dated March 28 that was
obtained by Absolute Return.
The firm, which is known for its
quantitatively-driven investment prowess, placed its private
equity and venture capital investments in a side pocket
starting in 2006. According to a side pocket exposure report
and performance update from September 2013, the aggregate
performance of these private equity holdings has been mediocre,
with the September 30 market value of $1,158,645,000 about $8.5
million below the $1,167,126,000 historical cost of the
The Composite Fund offers both a domestic and an offshore
feeder fund. Investors with side pocket interests in the
ISSN: 2151-1845 / CDC10004H
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