U.S. hedge fund Third Point said on Thursday it plans an initial public offering in London to raise about €500-million euros ($665.3-million U.S.), bringing one of the most aggressive activist investors to Europe.
Daniel Loeb, the firm's chief investment officer, has built a reputation for his brazen attacks on corporate executives, often using colourful language and forceful tactics to pressure companies to change their management or strategy.
In one recent note, he warned a board: "Do not make the mistake others have made by underestimating my resolve..."
Third Point will launch an IPO of its Third Point Offshore Investors Ltd fund on the London Stock Exchange, offering ordinary shares in euros, U.S. dollars and sterling.
"We believe that we will be the first U.S. hedge fund to list a single manager fund on the London Stock Exchange," Mr. Loeb said, adding that over 10 years the Third Point Offshore fund has had an annual average return of 23.1 per cent net of all costs and expenses.
UBS has been appointed global co-cordinator, book runner and joint lead manager, with Societe Generale as joint lead manager.
Activist investors such as Loeb have been gaining influence, prompting change with smaller stakes and winning support from a wider base of shareholders.
At the same time, floats of such alternative investment vehicles have been increasing with mixed results.
Breven Howard launched an IPO in March of its BH Macro Ltd hedge fund in London, but raised 23 per cent less than originally targeted. The share are up about 4 per cent since the IPO.
Fortress Investment Group LLC, however, launched the first U.S. listed hedge fund in February in a debut that saw its shares soar 89 per cent on the first day of trading.