For a pair of former Citigroup hedge-fund managers, Napier Park Global Capital may turn into a multimillion-dollar payday thanks to the Volcker rule.
Jonathan Dorfman and James O’Brien are among executives who got 75% percent of the investment firm for free when it broke off from Citigroup earlier this year.
The business may be worth $360m, according to hedge-fund consultant Ezra Zask. The estimate is based on the $143.4m in fees the firm may collect this year, according to internal projections obtained by Bloomberg News.
Any windfall Napier Park executives get stems from former Chief Executive Officer Vikram Pandit’s response to the Volcker rule, a Dodd-Frank Act provision designed to force U.S. banks to reduce investments in hedge funds.
While Citigroup says the decision to give away most of the business served shareholders’ interests, the New York-based lender never publicly disclosed how much it’s paying Napier Park executives.
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