Paul Hudson’s Glade Brook Capital Partners is raising money again for a new fund.
Hudson, a so-called Tiger Grandcub because he previously worked for Tiger Cub Chris Shumway, has already raised at least $26 million for the fund, Glade Brook Private Investors VI, according to a regulatory filing. The minimum investment is $1 million.
No other details have emerged, and Hudson did not return several messages seeking comment or additional information. However, it looks like this could be Hudson’s latest fund designed to make targeted private investments. Hudson is a former managing director at Shumway’s Shumway Capital Partners, where he led the firm’s private investment in Facebook in January 2011, before its initial public offering. Hudson then left the firm to launch Greenwich, Connecticut–based Glade Brook.
At the beginning of the year, $755 million of Glade Brook’s total $1.4 billion under management was invested in private investments, according to a private document obtained by Alpha. Glade Brook has concentrated most of its fundraising in private investments since the beginning of 2014.
Earlier this year we reported that Glade Brook raised money for the Glade Brook Private Opportunities Fund and Glade Brook Private Investors IV.
The Glade Brook Private Opportunities Fund plans to focus on four to six “big global ideas” over the next 24 months, according to an offering document obtained by Alpha. It plans to hold each of the investments for one to four years and anticipates cashing out of an investment either when the company goes public in an IPO or is sold.
The fund’s life is expected to span five years, although there could be two one-year extensions. The minimum investment is $1 million. The fund is charging a 1.75 percent management fee and a 20 percent incentive fee over an 8 percent internal rate of return.
As of a few months ago, the fund invested in two companies: Uber Technologies, the ride-sharing service, and Snapchat, the messaging company. Glade Brook Private Investors IV was created to invest in just Snapchat.
Meanwhile, Glade Brook Private Investors — initially formed to invest in Alibaba Group Holding — has raised more than $195 million in three separate series since 2012. In January 2014, Glade Brook raised $126. million for Glade Brook Private Investors II, which was formed to invest in Broadcasting Media Partners, the parent company of Univision Communications, the Spanish-language media company.
In November 2014, Glade Brook raised more than $50 million for Private Investors III, which was created to invest in Koudai Corp., which the investment firm describes as “one of the fastest-growing mobile e-commerce companies” in China. And in December 2014, Glade Brook raised $141.5 million for Glade Brook Private Investors V, formed to invest in Uber.
Glade Brook’s aggressive move into private investments comes as its hedge funds have hit a speed bump. Through May the Glade Brook Global Offshore Fund had gained 1.4 percent after losing 1.3 percent in 2014.
