A closed-end fund run by famed U.S. hedge fund manager John Paulson that was poised to be listed on the Toronto Stock Exchange has been shelved for the moment. See preliminary prospectus.
On Wednesday, sources confirmed a Wall Street Journal story saying the initial public offering (IPO) of Propel Multi-Strategy Fund has been delayed after the U.S. Securities and Exchange Commission made public civil fraud charges against Goldman Sachs.
Mr. Paulson has not been accused of any wrongdoing. However, the SEC charges against Goldman relate to an investment created at the request of Mr. Paulson's firm.
The promoter of the Propel Multi-Strategy fund in Canada is Propel Capital Corp., which did not return calls on Wednesday
The fund, which was to be priced at $10 a unit, was to provide Canadian investors with a way to gain exposure to the Lyxor/Paulson Advantage Fund Ltd. and Lyxor/Paulson International Ltd. It was to also give exposure to SPDR Gold Trust as Mr. Paulson has been bullish on the yellow metal.
UPDATE: Propel confirms that it is delaying the IPO, and plans to refile at a later date.