#Privateequity power house launches trading firm
Guggenheim Partners, a global diversified financial services firm, has launched Guggenheim Global Trading LLC (GGT), which will invest capital on behalf of the firm, its shareholders, its affiliates and a small group of institutional investors.
“As a private firm, we believe there are attractive opportunities to invest capital supporting trading strategies with high probabilities of success, particularly as banks are required to divest or significantly reduce their proprietary trading activities and smaller hedge funds find it uneconomical to continue.”
GGT will consider raising capital on a limited basis from third-party investors, but only to the extent that such third parties would be interested in being an equity partner with Guggenheim. GGT plans to hire approximately 20-25 trading groups within the next 12 months. While GGT may enter into strategic relationships with existing trading groups that have unique trading styles and strategies, its general preference will be to build its strategies outright.
“We look forward to growing this new business,” says Mark Walter, chief executive officer of Guggenheim Partners.