The billionaire founder of Galleon Group, Raj Rajaratnam, charged last week by federal prosecutors with insider trading, told investors he will liquidate his hedge funds.
Galleon, which managed about $3.7 billion, is exploring alternatives for the business, according to a letter sent to investors Wednesday. New York-based Galleon has been approached by unidentified parties interested in buying the company and an undetermined amount of its assets, according to a person familiar with the firm.
“I want to reassure investors of the liquidity of our funds and assure Galleon employees that we are seeking the best way to keep together what I believe is the best long/short equity team in the business,” Rajaratnam, 52, said in the letter. “I want to reiterate that I am innocent of all the charges.”
Rajaratnam, one of six people arrested Oct. 16 for alleged insider trading, is free on $100 million bail. Within three days of his arrest, investors asked to withdraw about $1.3 billion from Galleon, the person said. Founded in 1997, the firm was one of the three largest managers of technology hedge funds.
Saijel Kishan, Bloomberg News
