Alternative Investment News reports: Private equity firm The Carlyle Group has allocated the convertible arbitrage portion of its new multi-strategy hedge fund to Greenwich, Conn.-based Acuity Capital Management.
The $1 billion Blue Wave strategy, Carlyle’s first foray into hedge funds, is expected to launch next month. The convertibles portion is believed to be the only strategy that will be outsourced. A Carlyle spokesman declined to comment.
Carlyle will make monthly allocations to Acuity via a managed account, the size of which will depend on the fund’s performance and Carlyle’s view of the convertible sector in general, among other factors. But the final size of Carlyle’s total allocation should be no less than $50 million. Acuity Co-Founder Howard Needle declined to comment.