More than 100 hedge funds and companies private Equities competed to manage part of the portfolio of Russian billionaire and Chelsea owner Roman Abramovich when Concord Management offered portions of the portfolio worth $ 100 million each.
Most of the $ 6 billion in money is being handled by Concorde for Abramovich, who was slapped by the European Union and the UK with sweeping sanctions earlier this month alongside a group of billionaires close to Russian President Vladimir Putin.
These companies are blocked and cannot get rid of the money or even collect commissions from their management.
Under the Cayman Islands rules, where many hedge funds and companies are set up private equity, only companies that manage sanctioned funds can manage it and are not allowed to repay the money to their owners or allow the sale of Abramovich’s shares to another investor.
Even if hedge funds sell Abramovich’s stocks, they are in their possession, are deposited in a closed account and only commissions are charged, but cannot collect them until penalties are lifted.
Concorde was founded in 1999 by Michael Matlin, who has been distributing funds to the largest and most famous funds for over two decades, working with funds such as: Brevan Howard Asset Management, Millennium Management, The Carlyle Group, Apollo Global Management Inc. Bloomberg, Al Arabiya.net reviewed it.
Matlin, 58, has kept a low profile despite the billions that have gone through Concord, as he doesn’t have a LinkedIn profile and his company doesn’t have a website. His career as an analyst in a multi-billion dollar hedge fund in New York.
Concorde founder said in an earlier statement that his company “works as a consulting firm that provides independent research reports as a third party, performs due diligence, and tracks the investments of its clients.”
Many of the companies that have done business with Concord describe a closer relationship than a regular consulting firm, with some considering Concord to be the main investor. in hedge funds, even if the actual money reached the companies through external entities.
In a 2014 case involving Highland Capital Management, Concorde employee Heath Keane said his company represented outside investors, including Bradfield Overseas Holdings Ltd. and Netherfield Holdings Ltd, who invested their money based on recommendations from Concord.
In this case, Ken described Concorde as a “multifamily fund management office or fund,” while a Concord spokesperson said it was incorrect to describe the company as a fund management fund.
Abramovich, 55, amassed his $ 13.7 billion fortune, according to the Bloomberg Billionaires Index, by selling asset privatized companies acquired by the former Soviet Union, including the oil giant Sibneft and the airline Aeroflot. He also sold his assets in aluminum company to fellow Russian oligarch Oleg Deripaska, but retained holdings in company including Russian steelmaker Evraz.
It is unclear whether hedge funds and companies of private equity knew that Abramovich was the main investor in Concorde.
Businesses may also not be affected as it was only recently sanctioned, although some wealthy Russians faced a similar fate after Russia’s actions in Ukraine in 2014.
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