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☆ Adam Neumann's new startup Flow faces trouble in Nashville
▼ + stars: | 2024-08-20 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +10 min

Read previewAdam Neuman's post-WeWork venture Flow was launched with a $350 million check and stakes in six buildings. Now, one of those buildings is struggling, and equity investors risk being wiped out. Crowdfunding platform Yieldstreet, which has helped raise money for the property, recently told its equity investors that their investments could be wiped out. Flow launched in 2022 with investments in six apartment buildings, including the now-troubled Nashville property, and a $350 million check from venture firm Andreessen Horowitz. A Flow spokesperson sought to distance the Miami-based startup from the 2010 West End property, saying that Flow has never managed the building and is only the minority equity owner.

Persons: —, Adam Neuman's, Andreessen Horowitz, Neumann, WeWork, Neumann's, Yieldstreet, Nazare, Adam Neumann, They're, they're Organizations: Service, Business, Nazare, Yieldstreet, BI, SEC Locations: Nashville, Miami, Denver, Fort Lauderdale

☆ LVMH CEO Bernard Arnault's family office goes shopping for AI startups
▼ + stars: | 2024-08-19 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

The $220 million round in May, which also included Aglaé, valued H at $370 million, according to the company. While the amounts of Aglaé's investments aren't disclosed, the funding rounds for the AI firms totaled more than $300 million, according to Fintrx. Aglaé also invested in a $25 million seed round for Lamini, a Palo Alto, California-based startup building enterprise AI applications. Aglaé joined Susquehanna to invest in the $27 million seed round for Toronto-based Borderless AI, a human resource management platform. Arnault and his family are, however, big art collectors, and Aglaé was an investor in a $9.5 million funding round for LaCollection, a digital art platform.

Persons: Google's, Wendy, Eric Schmidt, Aglaé, Arnault, Robert Frank Organizations: Accel Partners, Google, CNBC, Fintrx, Aglaé Ventures, Susquehanna, Toronto, Music Media, Back, Netflix, Spotify Locations: Palo Alto , California, New York, Photoroom, France, Paris, Sonarverse, Irvine , California, San Francisco, French, LVMH, Airbnb

☆ A private-equity takeover is coming for startups
▼ + stars: | 2024-08-12 | by ( Melia Russell | ) www.businessinsider.com time to read: +6 min

The European private equity firm had been eyeing the late-stage startup for five years, impressed by its traction and focus on customer success. The speed of the deal, and the flashy multiple, illustrate how private equity funds are able to swallow startups more often lately. But in the face of rising inflation and interest rates, software customers from tech startups to mom-and-pop shops trimmed their budgets. Andreessen Horowitz plans to invest in the private equity asset class through its family office division. With high interest rates and a liquidity crunch reshaping the landscape, private equity is seizing the moment.

Persons: —, Scott Arnold, AuditBoard, Michael Brown, They're, Brown, Derek Hernandez, Aaron Fleishman, Fleishman, they're, Thoma, Yoni, Rechtman, it's, Catalyst, Andreessen Horowitz Organizations: Service, Business, Battery Ventures, Battery, Tola Capital, Thoma Bravo, Vista Equity Partners, Slow Ventures, Eldridge Industries, Sequoia Locations: Southern California, VCs, Big Tech, Metropolis, North America

☆ 'These are not normal;' A new type of dealmaking for AI startups is rattling Silicon Valley
▼ + stars: | 2024-08-10 | by ( Ben Bergman | Sri Muppidi | ) www.businessinsider.com time to read: +7 min

Google unnerved Silicon Valley last week when it agreed to pay $2.5 billion to license Character.AI's technology, hire its two superstar cofounders and 20 percent of employees. The deal came after AI developers Adept and Inflection both effectively sold themselves to Amazon and Microsoft, respectively, in recent months. It was only last year Character.AI raised $150 million in venture funding, which valued the company at $850 million. Its appeal as a chatbot that uses AI to make virtual characters that interact with users seems decidedly niche. Related storiesMost of the founders and investors Business Insider spoke to for this story say Google has little interest in Character.AI's actual product.

Persons: cofounders, Brent Queener, Kyle Sanford, Character.AI, Iris Sun, Noam Shazeer, Daniel De Freitas, Jack Selby, Peter Thiel's, Steve Brotman, Shazeer, De Freitas, PitchBook's Sanford, they're, Roy Bahat, Arvind Jain, Cameron Lester, Lester Organizations: Service, Microsoft, Bonfire Ventures, Business, Apple, Big Tech, AZ, Biden Administration, Federal Trade Commission, Department of Justice, Alpha Partners, FTC, DOJ, New York Times, Google, Madrona Venture, Bloomberg Beta, Jefferies

☆ Wealthy investors find opportunities in stock market sell-offs
▼ + stars: | 2024-08-09 | by ( Robert Frank | ) www.nbcnews.com time to read: +7 min

Wealthy investors and family offices shied away from stocks leading up to market swings this week, but many saw the drop in prices as an opportunity for tax savings and estate planning, according to wealth advisors. When stocks tumbled Monday, with the S&P 500 and Nasdaq down 3%, wealthy investors neither panicked nor jumped in to buy, according to several advisors. The drop in prices last Friday and Monday also offered a chance for wealthy investors to take advantage of tax benefits and gift strategies. With the gift and estate exemption amount scheduled to expire at the end of next year, many wealthy investors are working to give away the maximum before the expiration. “Most family offices are so invested in alternatives, hedge funds, PE and real estate, that they aren’t moving their investments around anyway,” said Geoffrey von Kuhn, an advisor to several of the nation’s largest family offices.

Persons: ‘, ’ ”, Sean Apgar, ” Apgar, BBR, —, William Sinclair, ” Sinclair, ”, Jennifer Povlitz, Geoffrey von Kuhn, Richard Weintraub, ” Weintraub, Buffett, Michael Pelzar, ” Pelzar, “, Jimmy Chang Organizations: UBS, Deloitte, Nasdaq, BBR Partners, Morgan Private Bank, Big Tech, “, UBS Wealth Management, Americas, Citi Private Bank, Bank of America Private Bank, ” Advisors, Rockefeller Global Family Locations: U.S, J.P

☆ This $49 million ranch for sale in Colorado is linked to the billionaire Walmart heirs and has a place in rock-n-roll history. Take a look.
▼ + stars: | 2024-08-08 | by ( Kelsey Vlamis | ) www.businessinsider.com time to read: +5 min

It's also linked to the Walton family — the billionaire heirs to Walmart. AdvertisementThe ranch once had a recording studio that hosted musicians like Stevie Nicks and Billy Joel. Hall and HallIn addition to its ties to the famous family of billionaires, the history of Caribou Ranch also involves some music legends. The Caribou Ranch Recording Studio was even inducted into the Colorado Music Hall of Fame in 2017. Hall and HallThe ranch served as a basecamp for miners during the period, according to Hall and Hall.

Persons: —, Elton John, It's, Walton, Sam Walton, Rob, Jim, Alice, Lukas, Stevie Nicks, Billy Joel, Rod Stewart Organizations: Service, Walmart, Hall, Business, Denver Post, Walton Enterprises, Street Journal, Bloomberg, Boys, Colorado Music Hall of Fame, of, Colorado Locations: Colorado, Nederland , Colorado, Boulder, Denver, Hall Boulder, Arkansas, Caribou, American

☆ Jeff Bezos' family office is making big investments in AI
▼ + stars: | 2024-08-02 | by ( Robert Frank | ) www.cnbc.com time to read: +1 min

Jeff Bezos at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 10, 2024. All of the investments made this year by Bezos' family office — called Bezos Expeditions — have been in artificial intelligence, according to exclusive data provided to CNBC by FINTRX, a private wealth intelligence platform. While the amounts he invested are not disclosed, Bezos Expeditions participated in funding rounds totaling more than $1 billion. In February, Bezos Expeditions invested in Figure AI, the humanoid-robot company that also counts Nvidia and Microsoft as investors. In July, he invested in a $300 million Series A round of Skild AI, which is focused on making AI systems for machines and robotics devices.

Persons: Jeff Bezos, Robert Frank, Bezos, — Organizations: Allen & Company Sun Valley, CNBC, FINTRX, Bezos Expeditions, Amazon, Expeditions, Nvidia, Microsoft Locations: Sun Valley , Idaho, Los Angeles

☆ The Fed is about to give more clues as to when it will finally start cutting rates
▼ + stars: | 2024-07-31 | by ( Bryan Mena | ) edition.cnn.com time to read: +4 min

Fed officials in recent speeches have said they’re pleased with the latest inflation data, acknowledging the steady progress but saying they’re not quite fully comfortable yet with slashing rates. “We set this rate when inflation was over 4%, and inflation is now, let’s call it, 2.5%. He has said that an unexpected weakening in the labor market would prompt the Fed to consider cutting rates sooner than expected. Economic growth in 2024 has been solid so far, despite the highest interest rates in nearly a quarter century. But the Fed’s decision to cut rates will be mainly based on inflation readings, absent any concerning news about the job market.

Persons: they’re, Christopher Waller, Austan Goolsbee, “, Goolsbee, Loretta Mester, Jerome Powell’s, ” Kathleen Grace, Waller, ” Powell, Powell Organizations: Washington CNN, Federal, Fed, Chicago Fed, Wall Street, Cleveland Fed, CNN, Labor

☆ Where are China's ultra-rich parking their wealth amid a slowing economy?
▼ + stars: | 2024-07-30 | by ( Lee Ying Shan | In Ying-Shan-Lee | ) www.cnbc.com time to read: +5 min

At a time when China's economy is facing headwinds, and growth has been slowing, where are the Chinese ultra-rich, whose numbers are expected to swell to 144,897 by 2028 from 98,551 in 2023, parking their wealth? However, the country's high-end property market remains a favored asset. Luxury real estate"There has been a noticeable increase in transactions within Shanghai's luxury real estate sector," said James Macdonald, head of China research at global real estate firm Savills, attributing it to a recent policy easing by the government. That said, China's luxury real estate market is still primarily concentrated in the core areas of first-tier cities, said Li. Other local investment classes, such as the wider property market and China-listed stocks are not as popular among the ultra rich, experts told CNBC.

Persons: Weiquan Lin, Frank, James Macdonald, Savills, Stephen Pau, Sam Xie, CBRE's, Xie, Arbour, Tian Di, Knight Frank Head of, Pacific Research Christine Li, Li, Nick Xiao, Xiao, Yongyuan Dai, Pau, defensiveness Organizations: CNBC, Pacific Research, Overseas, Domestic Institutional Investors, Domestic Limited, Hywin Locations: China, Shanghai, Lujiazui, Knight Frank Head of Asia, Pacific, Hong Kong, Yongyuan, Pau

☆ How VC Stephen Hays scraped his life off rock bottom after addiction and a bipolar diagnosis to tackle mental health stigma
▼ + stars: | 2024-07-29 | by ( Rebecca Torrence | ) www.businessinsider.com time to read: +10 min

Some parents had voiced concerns about Hays' "background," he told Business Insider. In 2020, he started What If Ventures, a venture firm focused on investing in mental health startups. Hays's new public persona as a staunch mental health advocate also puts a certain pressure on him to perform his recovery — "and I hate that," he said. He wants to show people struggling with their own mental health that working to get well is good enough. Advertisement"I don't just want to destigmatize addiction and mental health issues — I want to destigmatize the journey of getting better," he said.

Persons: —, Stephen Hays, Hays, couldn't, didn't, They'd, it's, Christine, he'd, Amit Etkin, Etkin, he'll, that's, Stephen, Christopher Kim, Kim, Hays doesn't, It's Organizations: Service, Little League baseball, Business, Neuroscience, Ventures, West, Space Ventures, Atlantic City, Magazine, Deep Space Ventures, Alto Neuroscience, BI, Argosy Strategic Partners, Argosy Locations: Dallas, Texas, Atlantic, Las Vegas, Colorado, Wickenburg , Arizona

☆ Family offices are giving top staff equity and profit shares in battle for talent
▼ + stars: | 2024-07-29 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

Family offices, the private investment arms of single families, are also shifting to profit shares as a way to better align the incentives of the staff with the family. "Family offices are competing for talent against each other, and against traditional private equity, hedge funds and venture capital." Family offices are increasingly offering lucrative shares of equity and deal profits to staff amid a growing battle for talent, according to a top family office attorney. They often pair co-investments with profit shares to create both upside and potential downside to staff. Because they serve a single family, family offices have more flexibility than many companies when it comes to designing pay plans.

Persons: McCurry, Patrick McCurry, McDermott Will, Emery, they're, Robert Frank, that's Organizations: UBS, Office Locations: Chicago

☆ Meet the 29-year-old son of a casino billionaire who just took his influencer and esports company public
▼ + stars: | 2024-07-29 | by ( Lian Kit Wee | ) www.businessinsider.com time to read: +3 min

Last Friday, Ho took his company, NIP Group, public on the Nasdaq stock exchange. NIP Group makes money from live streams — both of esports and from third-party influencers — and event production and its esports arm. NIP Group plans to explore esports real estate, digital collectibles, and esports training camps, among other strategies, the company said in a filing. Before the duo cofounded NIP Group, Ho was the chief marketing officer of iDreamsky Games, one of the largest game publishers in China. Though billed as an esports company, NIP Group made the bulk of its revenue last year primarily from managing 36,000 online entertainers — with money coming largely from fees on their live streams.

Persons: —, Mario Ho, Stanley Ho, Ho, NIP Organizations: Service, NIP Group, Nasdaq, SEC, Business, Group, iDreamsky, MIT Sloan School, Macau Esports Federation, MSI Finance Management Company, Bloomberg Locations: Sweden, China, Oslo, Hong Kong, Asia, Macau

☆ How a second Trump administration might risk the investment case for green energy
▼ + stars: | 2024-07-27 | by ( Hakyung Kim | ) www.cnbc.com time to read: +9 min

For years, China ramped up green energy production capacity, becoming the global leader in renewable energy manufacturing, from solar to wind to battery. In a second Trump administration, prices for imports from China are likely to surge for green energy producers. The view is that First Solar will benefit the most within the U.S. solar sector from greater trade restrictions, according to Baird. Ultimately, that may curtail the number of green energy startups and private companies that want to go public, Schleif said. "It's been really hard to compete with Chinese companies in any way, shape or form."

Persons: Donald Trump, Trump, Biden, Baird, Ben Kallo, Green, Carol Schleif, Schleif, Joe Biden, Andy Poreda, Tobin Marcus, Wolfe, TAN, Morgan Stanley, Elon Musk's, Advisory's Poreda, Poreda, It's Organizations: P, BMO Family Office, Biden White, Sage Advisory, Republican, Senate, White, Wolfe Research, Republican National Convention, Biden, JPMorgan, Materials Corp Locations: China, U.S, North America, Albemarle

☆ The personal cybersecurity concierge is a new perk, and need, among the wealthy
▼ + stars: | 2024-07-26 | by ( Ellen Sheng | ) www.cnbc.com time to read: +4 min

Cybercriminals are increasingly targeting wealthy individuals, making cybersecurity concierges a new must-have for the rich and their families, including executives. While companies are spending heavily on cybersecurity, personal and home devices are generally less protected, making them easier to crack. And despite their sizeable assets and growing threat of cyberattacks, family offices and wealthy families don't think of themselves as targets because hackings are rarely publicized. JPMorgan Private Bank offers cybersecurity help to its ultra-high net worth clients, along with lifestyle and travel services. "I think one of the misconceptions is that — particularly for family offices — 'we're small and nobody notices us.'

Persons: Bill Roth, Jeff Bezos, Saudi Crown Prince Mohammed bin Salman, Lauren Sanchez, Bill Gates, Elon Musk, It's, Bobby Stover, Ernst & Young, They're, Anwar Visram, HardTarget, Ileana Van Der Linde, I've, Visram Organizations: Saudi Crown, Ernst &, JPMorgan, JPMorgan Private Bank, Asset, Wealth Management, CNBC Locations: WhatsApp, Tinder

☆ Europe's AI-powered Google Translate rival DeepL launches traditional Chinese language in Asia push
▼ + stars: | 2024-07-24 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

Traditional Chinese is a written form of Chinese used in Taiwan and Hong Kong. Both locations are key business hubs for technology and finance — a factor that attracted DeepL to launch its latest language in those markets. DeepL, one of Europe's high-profile AI companies valued at $2 billion , sells translation software aimed at businesses rather than everyday consumers. German artificial intelligence translation startup DeepL on Wednesday launched traditional Chinese as a language option as it looks to expand its presence in Asia. With the launch of traditional Chinese, the firm is looking to help some of its international customers more effectively communicate with clients or employees in Taiwan or Hong Kong.

Persons: DeepL, Kutylowski, Mark Zuckerberg's Organizations: Wednesday, CNBC, Google, Microsoft, Ventures Locations: Taiwan, Hong Kong, Asia, The Cologne, Germany, Japan, Korea

☆ This scientist who worked for Jeff Bezos and Bill Gates is now a VC funding other 'mad scientists'
▼ + stars: | 2024-07-23 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +5 min

And while he wants to tackle the world's biggest problems such as waste, impact isn't Deep Future's sole priority. Related storiesIn some ways, Deep Future's mission harkens back to Silicon Valley's roots, he said. As for Deep Future's investments, the challenge is whether the technology can be built and made cost-effective, ideally within its investment horizon of 10 years. One of Deep Future's portfolio companies, Descycle, is developing non-toxic chemicals to separate gold in electronics in landfills. Getting investors on board with mad scientistsWith Deep Future's niche, getting investors' attention has been easy, Holman said.

Persons: —, Pablos Holman, Jeff Bezos's, Bill Gates, Michael Reid, Holman didn't, Holman, Matt Mullenweg, that's, Alfred Steiner, I'm Organizations: Service, Origin, Ventures Laboratory, Business, Investors, WordPress

☆ Unsealed deposition with Elon Musk's righthand man reveals new details about their working relationship
▼ + stars: | 2024-07-23 | by ( Grace Kay | ) www.businessinsider.com time to read: +1 min

Previously sealed court documents provide insight into Elon Musk's righthand man, Jared Birchall. In a deposition for Twitter's lawsuit against Musk, Birchall describes his relationship with the Tesla CEO. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementEver wondered what it's like to serve as Elon Musk's righthand man? A trove of previously unreleased documents related to Musk's legal battle with Twitter provides a peek into Musk's working relationship with Jared Birchall, a former banker who runs the billionaire's family office.

Persons: Elon Musk's, Jared Birchall, Musk, Birchall, —, Aaron Greenspan Organizations: Service, Elon, Twitter, Chancery, Business Locations: Delaware

☆ AI Forge promised to help founders build their dream startups. Some say the incubator was a chaotic disappointment.
▼ + stars: | 2024-07-23 | by ( Riddhi Kanetkar | ) www.businessinsider.com time to read: +12 min

In September, about a dozen founders arrived in Miami to participate in AI Forge, a new startup incubator. Courtesy of an AI Forge Miami participantJackson said that none of the Miami founders had complained about developers turning work in late. AI Forge agreed to take over 9% of their businesses, "but that means they've got the other 91%," he said. Two Miami founders said they were considering taking legal action against AI Forge over their late and missing payments. AdvertisementAI Forge discontinued its Miami program after the first run, but it launched its third London program in May.

Persons: They'd, Kevin Jackson, —, hadn't, Jeffrey Greenberg, Slack, Jackson, Forge, PitchBook, they'd, Forge hadn't, didn't, they've, Craig Massey, Massey, Forge's, Heradio Luces Organizations: Service, Founders, Six Miami, Universal, Getty, Forge, Miami, London Locations: Miami, Italy, Miami Bay, Turkey, Los Angeles, Pennsylvania, London

☆ As the super-rich pile into alternatives, a top investment manager reveals how others can too
▼ + stars: | 2024-07-22 | by ( Amala Balakrishner | In Amala-Balakrishner | ) www.cnbc.com time to read: +4 min

Private market assets or alternative investments are those that do not fall into the conventional categories of stocks, bonds, commodities and cash. Prequin, which provides data on the alternative assets market, says it expects assets under management to hit $23.21 trillion by 2026 . Listed companies related to private markets He advised investors to consider listed companies in "the business of private markets management." These include the likes of KKR and Blackstone , which invest in a range of alternatives like real estate, credit and capital markets. Listed private market funds Another way to gain exposure to the alternatives space is through private market funds which are available in some countries.

Persons: —, Juan Delgado, Moreira, Hamilton Lane, Delgado Organizations: CNBC Pro, Nvidia, KKR, Blackstone, London Stock Exchange, Oxford Tech, Venture Capital Trust, Temasek, Asset Management Locations: U.S, Hamilton Lane, Singapore

☆ Buyout firm L Catterton approaches Mattel with acquisition offer, Reuters sources say
▼ + stars: | 2024-07-22 | by ( ) www.cnbc.com time to read: +2 min

The logo of US toy company Mattel is seen at the 72nd toy fair (Spielwarenmesse) in Nuremberg, southern Germany, on February 2, 2023. L Catterton, the private equity firm backed by luxury goods giant LVMH, has approached Mattel , the toy maker behind Barbie and Hot Wheels, with an acquisition offer, people familiar with the matter said on Monday. Hasbro also declined to comment, while L Catterton did not respond to a request for comment. Mattel shares jumped 20% to $19.49 following the Reuters report of the approach, giving the toy maker a market value of $6.5 billion. L Catterton, which has $34 billion in assets under management, has made more than 250 investments in consumer brands since its launch in 1989, according to its website.

Persons: Barbie, Catterton, El, Price, L, Bernard Arnault Organizations: Mattel, Hasbro, Capital, Fisher, American Girl, LVMH Locations: Nuremberg, Germany, El Segundo , California, American

☆ Stanley Druckenmiller hits another home run in small caps after nailing the Nvidia trade
▼ + stars: | 2024-07-17 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Stanley Druckenmiller , still basking in his winning Nvidia bet, has hit another home run in this bull market. When Druckenmiller acquired the position in the first quarter, small caps were significantly underperforming their large-cap counterparts. Druckenmiller once managed George Soros' Quantum Fund and shot to fame after helping make a $10 billion bet against the British pound in 1992. After the stock soared from $150 to above $900, Druckenmiller slashed the stake. A lot of what we recognized has become recognized by the marketplace now," Druckenmiller said on CNBC at the time.

Persons: Stanley Druckenmiller, Druckenmiller, Russell, George Soros, bullish, We've Organizations: Nvidia, Duquesne Family Office, Investment, SEC, Quantum Fund, Duquesne Capital Management, CNBC

☆ Future downwards earning revisions could lead to a sideways market, says Rockefeller's Jimmy Chang
▼ + stars: | 2024-07-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFuture downwards earning revisions could lead to a sideways market, says Rockefeller's Jimmy ChangJimmy Chang, Rockefeller Family Office CIO, joins 'Closing Bell' to discuss why he expects stocks to turn to the downside.

Persons: Jimmy Chang Jimmy Chang Organizations: Rockefeller Family

☆ Jury Finds Archegos Founder Bill Hwang Guilty on 10 Charges
▼ + stars: | 2024-07-10 | by ( Matthew Goldstein | ) www.nytimes.com time to read: +1 min

A jury in federal court in Manhattan on Wednesday found the investor Bill Hwang guilty on charges arising from the collapse of Archegos Capital Management, which led to roughly $10 billion in losses for a handful of big Wall Street banks. Two key witnesses were former employees of Archegos, which Mr. Hwang had set up in 2013 as a giant family office that traded like a hedge fund but without much regulatory oversight. In all, Mr. Hwang, 60, was charged with 11 counts of securities fraud, wire fraud, conspiracy, racketeering and market manipulation. The jury found him guilty on 10 of those charges and found him not guilty on one of the seven counts of market manipulation. Mr. Hwang, who was seated and wearing a dark suit when the foreperson read the verdict, could spend the rest of his life in a federal prison.

Persons: Bill Hwang, Hwang, . Hwang Organizations: Archegos Capital Management Locations: Manhattan

☆ Archegos founder Bill Hwang found guilty in multibillion-dollar fraud trial
▼ + stars: | 2024-07-10 | by ( Samantha Delouya | Allison Morrow | ) edition.cnn.com time to read: +1 min

CNN —Bill Hwang, founder of Archegos Capital Management, was found guilty of fraud Wednesday by a Manhattan federal court after the 2021 collapse of his investment firm wiped billions of dollars off financial markets and nearly brought down Wall Street. The jury delivered a speedy conviction, finding Hwang guilty on 10 of 11 criminal counts after beginning deliberations Tuesday afternoon. Archegos’ implosion cost shareholders $100 billion and banks $10 billion, the prosecutors argued. In a statement, the US Attorney’s office for the Southern District of New York said Hwang’s guilty verdict sends a message that market manipulation would be held accountable. “Hwang and Halligan were able to fraudulently inflate a $1.5 billion portfolio into a $36 billion portfolio,” the statement said.

Persons: Bill Hwang, Hwang, Hwang’s, Patrick Halligan, “ Hwang, Halligan, ” Hwang Organizations: CNN, Archegos Capital Management, Warner Bros, Southern, of Locations: of New York

☆ Archegos founder Bill Hwang convicted at criminal trial over fund's collapse
▼ + stars: | 2024-07-10 | by ( ) www.cnbc.com time to read: +4 min

Sung Kook (Bill) Hwang, the founder and head of the private investment firm Archegos, arrives at the Manhattan Federal Courthouse in New York City, U.S., July 9, 2024. The jury, which began deliberations on Tuesday, found Hwang guilty on 10 of 11 criminal counts and Patrick Halligan, his Archegos deputy and co-defendant, guilty on all three counts he faced. Hwang and Halligan sat flanked by their lawyers as the verdict was read by a soft-spoken foreperson. Hwang, 60, had pleaded not guilty to one count of racketeering conspiracy, three counts of fraud and seven counts of market manipulation. At its peak, prosecutors said Archegos had $36 billion in assets and $160 billion of exposure to equities.

Persons: Sung Kook, Bill, Hwang, Patrick Halligan, Halligan, Prosecutors, Andrew Thomas, Barry Berke, William Tomita, Scott Becker, Archegos Organizations: Archegos Capital Management, Prosecutors, U.S . Justice Department, U.S, Attorney's, Southern, of, Credit Suisse, UBS, Nomura Holdings Locations: Manhattan, New York City, U.S, of New York

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