Some key investors in private equity firm Harbinger Capital Partners have submitted withdrawal notices, indicating they may want to exit the hedge fund. Unidentified sources told the Wall Street Journal that Blackstone Group and Goldman Sachs Group are among the investors who have submitted withdrawal notices.
According to Bloomberg, Goldman Sachs plans to redeem $120 million from Harbinger. Goldman is apparently upset after Harbinger's returns lagged and CEO Philip Falcone disclosed that he had borrowed $113 million from a smaller fund that had suspended investor withdrawals.
Falcone said he can handle any redemption notices from investors. The Harbinger fund has about 90 percent of its $3.4 billion in net assets tied up in wireless investments, including LightSquared.
LightSquared plans to build a nationwide LTE network that covers 92 percent of the U.S. population. The company has said its wholesale LTE network will allow for terrestrial-only, satellite-only or integrated satellite-terrestrial services (via the terrestrial and MSS spectrum Harbinger scored through a merger in March with satellite operator SkyTerra).
For more:
- see this Wall Street Journal article
- see this MarketWatch article
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