Värde Management, LP, otherwise known as Värde Partners, is a large Minneapolis-based hedge fund with almost $21 billion in assets under management (AUM). The firm employs a team of around 100 financial advisors who manage the investment functions at the firm, in addition to a large team of individuals who help manage other aspects of Värde Management's operations.
In total, the firm is responsible for 87 funds, many of which are hedge funds. In this capacity, the firm makes and manages investments for all of its funds. Specific investments and investment strategies vary based on the fund, though.
Värde Management Background
Värde Management has been operating as a hedge fund and investment management firm since it was founded in 1993. From then on, it has expanded to several countries around the world. Aside from its headquarters in Minneapolis, the firm has offices in London, Singapore and New York, as well as other offices in Asia and Europe.
Värde has 16 partners, and they work at and own the firm together, along with one retired partner who has an ownership stake. These current and former partners own 100% of the firm as a group. The firm has its roots in credit markets and distressed investments.
Värde Management Investment Philosophy
Värde Management's overarching investment philosophy varies depending on the fund. Some funds may combine multiple strategies, while others may be more limited when it comes to its guiding principles.
On a broad level, the firm describes its firm-wide investment philosophy as applying "a rigorous, fundamental, value-based approach with a view of value across the liquidity spectrum, as well as the full capital structure of individual investments."
All portfolios and funds at Värde are built to minimize downside risk, which is the way most hedge funds operate. The firm uses both quantitative and qualitative analysis, and its major investment teams focus on the following:
- Corporate and traded credit
- Financial service
- Real estate
- Real assets and infrastructure
Largest Hedge Funds Managed by Värde Management
The Värde Fund XIII, LP
- AUM: $3,187,399,920
- Minimum: $10,000,000
- Beneficial Owners: 237
The Värde Fund XII (Master), LP
- AUM: $2,472,161,889
- Minimum: $10,000,000
- Beneficial Owners: 217
Värde Investment Partners, LP
- AUM: $2,329,055,687
- Minimum: $5,000,000
- Beneficial Owners: 179
Värde Credit Partners Master, LP
- AUM: $1,966,712,341
- Minimum: $250,000
- Beneficial Owners: 457
Värde Investment Partners (Offshore) Master, LP
- AUM: $1,853,175,906
- Minimum: $0
- Beneficial Owners: 3
Fees at Värde Management
Värde Management charges fees to all of its funds based on a percentage of the fund's total market value. These fees vary depending on the fund and strategy. More information on specific fee schedules is included in the governing documents for any specific fund. You can also contact the firm for more information.
Värde Management also takes performance-based fees from certain funds. Similarily, these fees are based on the fund, so you'll want to review the governing documents to fully understand the fees for any given fund.
What to Watch Out For
Only accredited investors can invest in hedge funds. To be an accredited investor, you must have at least $200,000 of earned income ($300,000 for couples) in each of the past two years, as well as a reasonable assumption that the same will be true for the current year. If you have at least a $1 million net worth (minus the value of your primary residence), either on your own or together with a spouse, you are also considered an accredited investor.
Based on its Form ADV, Värde Management has a clean record in the eyes of the U.S. Securities and Exchange Commission.
Becoming a Client of Värde Management
Remember, you can only work with Värde Management if you're an accredited investor. If you think you meet these requirements as well as the others set by the firm, try reaching out directly. Your best bets are to either email or call the firm.
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