Meridiem Capital Partners, the stocks-focused hedge fund led by Khalid Malik, has recovered to roughly $1.6 billion in assets with the financial backing of Schonfeld Strategic Advisors after the firm lost $1.5 billion of capital from Millennium Management more than two years ago.
The fund is targeting continued growth and is on track to reach $2 billion in assets by the end of the year. Schonfeld, which assumed the role of the fund’s largest external backer after Millennium’s departure, increased its investment this year in a move that helped lift Meridiem’s asset base.
Performance so far this year has been a notable component of the rebound. Meridiem Capital Partners generated a 13.6% return during the first half of the year, a result that has accompanied its renewed fundraising momentum.
As part of its growth push, Meridiem has hired John Golden as president. Golden was previously a partner and co-founder of Spicewood Partners, an energy-focused private equity firm. In his new role he will concentrate on raising capital and overseeing investor relations and business development for Meridiem as the firm seeks to broaden its investor base.
The firm’s recovery is a relatively uncommon instance of a hedge fund regaining substantial external support after experiencing large client withdrawals. The situation reflects both the fundraising work under way at Meridiem and the role of a major backer in stabilizing assets following the exit of a prior financier.
Meridiem’s trajectory also sits within a broader market pattern in which multistrategy hedge funds continue to allocate to external managers. The fund’s rebound underscores the dynamics of capital flows and manager relationships within that segment of the hedge fund industry.
Looking ahead, the firm’s immediate priorities include converting recent performance and the enlarged backing into a wider investor base while maintaining the momentum that produced double-digit returns in the first half.