Hedge Funds

Big players take on Merrill Lynch


Ross Margolies' Saranac Capital and Donald Sussman's Paloma Partners have both recently tapped Merrill Lynch's new hedge fund capital raising business to raise capital for them.

The hires follow moves over the last two years by Moore Capital, Chilton Investment and Pequot Capital to hire a similar capital raising venture from Credit Suisse First Boston.

The terms of the deals could not be learned, but people familiar with the capital raising business say that fees typically run between 2% and 3%.

Merrill used its formidable institutional sales force before to sell hedge funds such as Long Term Capital