The capital circle of life is evolving as asset classes continue to converge. As activist funds deploy capital like private equity firms and index funds wield their weight like activists, private equity firms are raising money for activist funds. Vanguard, with more than $6.2 trillion assets under management, is responding to market demands by starting its own private equity fund. The venture enables the fund manager to capitalize on the record levels of dry powder raised by private equity firms and hold capital for longer.
In an interview with the Financial Times, Gary Retelny, ISS’s stamp-collecting CEO, defended his bold decision to sue the SEC in an effort to block rule changes that would undercut ISS’ recommendations and influence. Retelny argues that ISS has become a scapegoat for companies as they stare down an increasingly concentrated and dissenting shareholder base.
Retelny has found some support from Republican hedge fund donors. Elliott Management’s Paul Singer wrote to the SEC this week expressing his ire regarding these potential new rules while Third Point LLC’s Daniel Loeb decried Washington as a “swamp.”
Have a great weekend,