Cube Capital co-founder to spin out real estate business

HONG KONG/LONDON Fri Dec 13, 2013 10:53am EST

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HONG KONG/LONDON Dec 13 (Reuters) - The co-founder of hedge fund firm Cube Capital is spinning out its real estate business into a new entity, in a move that Cube said will reassure investors it is focused solely on managing hedge funds.

Cube Managing Director Peter Madsen told Reuters Oleg Pavlov, one of Cube's founding partners, will head up Quadrum, the new real estate business based in London. Quadrum will invest in emerging markets as well as in distressed opportunities in developed countries.

"We are now an institutional fund of hedge funds and (our clients) don't care about the real estate business," he said, adding that the spin-out would mean Cube could focus solely on managing its hedge fund products.

Pavlov will remain a minority stakeholder in Cube, while Cube's other two founding partners - Francois Buclez and Alan Sipols - will take minority stakes in the new real estate entity.

Cube manages $1.3 billion in assets but $350 million of this will transfer into Quadrum. There will be no loss of clients or staff across the two firms, Madsen said.

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