BOSTON: Billionaire investor Daniel Och, who based hedge fund Och-Ziff Capital Management, mentioned in a submitting on Friday that he plans to boost $750 million via a clean test acquisition car, changing into the most recent main hedge fund investor to launch one.
Och, who began Och-Ziff in 1994, retired as its chief government in 2018 and left the agency, which is now known as Sculptor Capital Management, final yr.
Ajax I, might be managed by Och and investor Glenn Fuhrman, who co-founded MSD Capital, which manages Michael Dell’s fortune, in 1998. Instagram co-founder Kevin Systrom, Square co-founder Jim McKelvey, 23andme co-founder Anne Wojcicki and Chipotle founder Steve Ells will serve on the board.
Ajax sponsors have lowered the promote to 10% as an alternative of the same old 20%, based on the regulatory submitting.
Ajax mentioned it would search an organization that operates within the web, software program, monetary expertise or client industries.
Och, via his household workplace Willoughby Capital Holdings, has an extended observe document of investing in expertise firms together with Coinbase, Instacart, Stripe and Robinhood.
He now joins the ranks of hedge fund managers William Ackman’s Pershing Square, Jeffrey Smith’s Starboard Value LP and Daniel Loeb’s Third Point LLC who’ve all raised swimming pools of capital generally known as particular function acquisition firms (SPACS).
A SPAC is a shell firm that raises cash via an preliminary public providing to purchase an working entity, sometimes inside two years.
In whole, 112 SPACS have raised $42.9 billion via an IPO within the first 9 months of 2020, making it the largest yr on document, based on SPAC Research knowledge.
A merger with a SPAC permits a non-public firm to entry capital rapidly and quietly, which is particularly useful through the unstable buying and selling situations which were influenced by the coronavirus pandemic and the Nov. three U.S. presidential election.
Goldman Sachs, Citigroup and J.P. Morgan are among the many underwriters of Och’s enterprise.