|Pardus Capital is reportedly in the process of launching a European-focused shareholder activist fund, PCM. According to the Financial Times, the New York-based activist hedge fund is looking to use PCM in order to invest in activist positions throughout Europe and return to the firm’s shareholder activist origins.|
With the new hedge fund, Pardus Capital will take large positions with pooled investors in distressed companies. The firm has begun speaking with investors about taking stakes ranging from $200m and $500m in the fund with plans to finalize these agreements within months. These investors should expect to see access to returns on a month-to-month basis.
Pardus Capital’s history in Europe is controversial. The firm aggressively sought seats on the boards of Frances’s car parts maker Valeo and IT services company Atos Origin. However, PCM has already seen a ROI of 17%in December and January from a fund of $20m of partners’ money, and European activism is predicted to be successful in 2011.