Patrik Edsparr, the former head of Citadel LLC’s securities unit, is starting a hedge fund that will invest in Asian corporate loans sold by European banks, according to two people with knowledge of the plan.
Edsparr and Chris Mikosh, a former Goldman Sachs Group Inc. (GS:US) managing director, have tentatively named their firm Tor, said the people, who asked not to be identified because the plan is private. The fund will have offices in London and Asia.
Neither Edsparr nor Mikosh returned messages on their mobile phones seeking comment. Reuters reported earlier today that they planned to start the firm.
Edsparr, 46, was ousted as chief executive officer of Citadel Securities in May 2010 after disagreeing with the management team and Citadel founder Ken Griffin on strategy and culture, Griffin said in a letter to employees at the time. Griffin disbanded the unit last year, ending a three-year effort by the Chicago-based hedge fund to build a business to compete with investment banks such as Goldman Sachs Group Inc.
European banks are under pressure to clean up their balance sheets, reduce risk and raise capital to withstand writedowns following the region’s debt crisis and to comply with new regulatory capital requirements. The European Banking Authority in December ordered banks to raise 115 billion euros ($141 billion) by June.
Banks across Europe have announced plans to trim more than 950 billion euros of assets from their balance sheets over the next two years, according to data compiled by Bloomberg. Fund managers including Asia Research & Capital Management, Och-Ziff Capital Management Group LLC (OZM:US) and Marathon Asset Management LP have said they may buy such assets.
Swedish-born Edsparr, who was based in London, joined Citadel as global head of fixed income and head of the firm’s European business in July 2008.
Edsparr, who has degrees in Russian, mathematics, business and finance, previously worked at JPMorgan Chase & Co., where he ran businesses including foreign exchange, securitized products and principal investments. He joined the New York-based bank in 1996 and ran the bank’s fixed-income business as well as markets including foreign exchange and securitized products.
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