How are Analysts (not PMs) raising $500mm+ funds from Citadel / Millennium / P72 / etc? Seen a few of these launches in the past 1-2 years. If they were that good, why weren't they made PM? Who are these LPs entrusting them with that much capital?
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Which funds have been started by analysts? I'm interested; I actually haven't seen any, but I have seen many launches from younger PMs. Please share names of funds or article links, I'm genuinely curious
Answer to your question: analysts at Citadel (5+ years of experience) run multi-hundred $M sleeves, essentially with full discretion, and they get set payout. There are analysts that run $1bn+ carve-outs, it's actually not uncommon at all in big-books. Millennium has a similar structure, but those with a similar role (running sleeves under a senior PM) operate under the title "portfolio manager" as opposed to "analyst" at Citadel. Could totally see a situation of an analyst averaging +4-6% or higher as their allocation scaled from like $300 --> $500 --> $700 over 3 years, with 0 net/factor exposure. Can definitely raise a lot of money with that kind of track record. Probably doesn't happen everyday, but someone running this much money is truly a junior PM, not an analyst. Just a title thing.
https://www.linkedin.com/posts/andrewmarquardt10_scoop-former-citadel-a…
One of the two co-founders of Delta Global was an Analyst at P72, but I believe his cofounder was PM-level at DESCO. So doesn't really count.
Do you have any more info on PL3 / Delta Global like strategy/aum/performance so far?
Family money and connections
I know the guy in question, not necessarily. Just a really sharp dude with great track record
I don’t know the guy so genuinely curious - how are you still an analyst mid-30’s if you have a great track record? I mean this in a more general sense of, how to evaluate someone’s track record outside in (probably not possible?). Relevant more generally in terms of trying to to assess what pods/pm’s that are hiring are actually “good” vs adverse selection problem, etc
Pure researchers who have never traded don't start hedge funds. If you're in the habit of handing money to people who have never traded, expect lots of failure. That's why the business model is to give tiny meaningless amounts of risk to pure junior analysts who are transitioning to trading, and allow him to quickly grow his book over time if he shows promise. Many of these "analysts" you hear about are actually Junior PMs who run a sleeve. they can be generating anywhere from $10-50M of PnL per year. not unreasonable if they raised $100M for a hedge fund with those numbers.
think op's question is more - if this guy's able to raise his own fund why isn't he at least a "pm" at citadel which is a good question. honestly not sure many "pm"s at citadel could raise their own $500mm fund. it's prob connections / family.
This is the right answer - just because you put up 8 figures of PnL at a platform doesn’t mean you can raise an $XXX million dollar fund
Reckon that number would need to be 9 figures at least, which yes, for some analysts / sub-PMs with big books, it could be (on a cumulative basis).
Exactly. Look at recent Citadel cubs from Citadel *PM*s, many of which raised <$300mm (cutter capital, wellfield capital which i think was folded into freestone grove). Look at launches of tenured superstars from other firms, and they usually raise max $1B (avala, surgocap, etc). And different market, but holocene (founded by a Citadel business unit head) launched with only $1B+. And yet this Citadel 'Analyst' is on track to drum up $600mm (supposedly) - kind of surprising
Not quite sure it’s fair to compare Biotech and Energy, 2 extremely niche / hard sectors that don’t get a ton of love from LPs, to TMT and consumer…not fair at all
Cutter will be closer to $500 by end of year. Don’t know anything about Wellfield but seems like you’re right with Freestone
If you want to compare platform spin-outs to Avala / other tiger cub spin-outs, compare them to Ilex / fifthdelta / benchstone / a handful of L/S launches out of Millennium that started with $750+ out the gates / vestal point / norias
You can’t compare SurgoCap, where the founder was the CIO for several years, to a normal PM. If you want a fair comp for surgoCap, go look at Freestone, which launched with 2x the AUM ($3.5bn), Jain, and the large $3-4bn macro spin out (Taula)
Can someone confirm that a few analysts have actually raised $500M+ debut funds each as lead GPs/CIOs? The one link in this thread is literally a rumor and likely a marketing tactic.
I remember a firm a few years ago publicly state that they had $2B+ of LP commitments for their debut fund. It was unbelievable at the time given a lack of expected track record. The firm ended up closing 1/10 of their “commitments” and then had to explain what happened.
I’m generally happy for any young person who is able to execute extraordinary entrepreneurial pursuits, especially in investment management where it’s relatively uncommon vs. tech. But this industry is extremely rigid, so it’s hard to believe a lot of what is being discussed in this thread. Happy to be proven wrong though.
For those questioning NP / whether he’ll hit that $600 target - he’s a sharp guy and has a good track record. Won’t say too much but certainly not a rumor. He’s not an analyst, also. He’s a PM.
At Citadel?
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