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CORRECTED - UPDATE 1-Aveon IPO delayed due to market conditions -source
February 7, 2011 / 6:32 PM / 7 years ago

CORRECTED - UPDATE 1-Aveon IPO delayed due to market conditions -source

(Corrects price range in 3rd paragraph to $14 to $16 each) (Adds background)

NEW YORK, Feb 7 (Reuters) - Aveon Group LP, an investment management firm looking to buy controlling stakes in nine hedge funds, delayed its initial public offering “due to market conditions,” an underwriter said on Monday.

No further details were available about the IPO, which was originally expected to price after the U.S. market close on Monday.

Marblehead, Massachusetts-based Aveon had planned to raise around $235.5 million at the midpoint of its proposed price range. The firm planned to sell 15.7 million common shares for $14 to $16 each, according to the latest filing with U.S. regulators.

The company was planning to spend proceeds from the IPO on acquiring 30 percent stakes in nine hedge funds, which operate 12 funds and manage about $3.1 billion in combined assets, the filing showed.

The small- to mid-size hedge funds, which include Viridian Partners LLC and Chesapeake SP Partners LLC, offer an array of strategies, including futures, long-short equity and event-driven distressed debt securities trading.

Through acquisition of the funds, Aveon said it planned to create investable multi-fund composites to appeal to institutional and other larger investors, the filing showed.

Aveon had planned to begin trading on the New York Stock Exchange on Tuesday under the symbol “AVO” AVO.N.

Underwriters on the IPO are led by JP Morgan Securities and Jefferies & Co. (Reporting by Alina Selyukh, editing by Dave Zimmerman)

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