Managers prepare billion dollar launches

Carlyle Group, a US private equity firm, and Jabre Capital Partners, founded by former GLG partner Philippe Jabre, are competing for top spot with expectations of raising between $2bn and $3bn for their multi-strategy funds.

Bankers said Carlyle Blue Wave, run by former Deutsche Bank executives Rick Goldsmith and Ralph Reynolds, had received promises of $1bn from investors. Carlyle declined to comment.

Jabre, who plans to start trading in Switzerland on February 6, has told bankers he has received a promise of $500m. He is confident of his fund growing to $5bn and establishing a Hong Kong office by the end of the year, but will have to convince investors his regulatory troubles are behind him. The UK Financial Services Authority fined him £750,000 last year for inadvertent market abuse. Jabre Capital Partners declined to comment.

Bankers said they expect US firms Brigade Capital and Menta Capital to raise $1bn for their new funds. Brigade will invest in companies with high debt and Menta will follow a market neutral strategy, taking long and short equity positions that cancel out each other. The firms declined to comment.

Only two firms raised a large hedge fund in the first quarter of last year. Convexity Capital, raised $5bn, a record for a first-time hedge fund and GSA Capital raised $1bn for its third fund.

• Amaranth Advisors has closed its operations in London by going into voluntary liquidation.

Patrick Brazill and Elizabeth Bingham of accountant Ernst & Young are joint liquidators, according to a legal notice. They urged creditors to alert them of any debts by February 12.

The firm has laid off 250 of its 420 staff since losing $6.5bn in September, 70% of its assets.