search   Knowledge Bank printable version
 Knowledge Bank
 Deal Information
 Industry Events
 Advocacy Forums
 Site Utilities
 Free Offers

Click here to
Update Registration

Please be advised that the use of ®
is subject to the
Terms & Conditions

of use and the
Privacy Policy


Best viewed in

Knowledge Bank > Hedge Funds
Select an area

Free trial of Total Securitization for site members.

Sciens Prices First CFO
Total Securitization -- Institutional Investor News (December 11, 2006)

Sciens Capital Management has priced its first collateralized fund obligation, the E240 million Sciens CFO I. The deal is collateralized by shares in 50-75 hedge funds utilizing 10-12 different investment methodologies, said John Rigas, ceo of the New York hedge fund. The transaction is the first of a planned program of at least yearly issuance, with each new issue at least 250-300 million, in dollars or euros.

The Sciens CFO broadens the hedge fund's product offering while increasing its asset under management, Rigas said. The deal was denominated in euros because it was marketed exclusively to European investors, primarily banks and insurance companies. The strategies of the hedge funds backing the CFO include convertibles, equity long/short, statistical arbitrage and emerging markets.

Sciens joins a short list of issuers who have launched CFOs this year, including AGF Alternative Asset Management with the Phenix CFO and Coast Asset Management with its Coast CFO 2006-I and II. Unlike the other issuers, Sciens is a relatively small shop, with $980 million in assets under management, not including the CFO. By contrast, Coast has $6.7 billion in assets under management.

One CDO official said he thought that Sciens' size could affect its performance. "The hedge fund world is very opaque. The bigger the funds are, the more access to information they can get," the official. Rigas countered Sciens has built up expertise and resources despite its smaller size. "Yes, the other players are bigger but we have been managing the fund of funds for three and a half years since we got started and have built up very robust models and risk management," he said.

The Sciens CFO was priced Dec. 7. The underwriter is Bear Stearns.

Samantha Rowan
Managing Editor
Real Estate Finance & Investment
Securitization News
(212) 224-3996



© Copyright 2014. The Mayer Brown Practices. All rights reserved.

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the “Mayer Brown Practices”). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

Legal Notices | Attorney Advertising | Site Index | Contact Webmaster

*The site links listed on this web site are for reference use only.
The firm does not necessarily sponsor, endorse or verify the accuracy of the content contained in any of these sites.