Arnhold & S. Bleichroeder Inc., the institutional brokerage firm, is attempting to raise $60 million from U.S. institutions for a private equity fund investing in India. So far, its lead investor is the International Finance Corp.
The firm also is planning to rebuild its pension fund management business by marketing international equity management after a long hiatus. In its heyday, the asset management arm of the institutional brokerage firm had $700 million in international assets. Now it has $150 million.
In 1993, after a few years of "mediocre" performance, according to John Arnhold, co-president, the international portfolio manager, Howard Moss, left the firm to join Jennison Associates. The bulk of the firm's clients also left, he said.
In January 1994, the firm hired Drew Collins, formerly of the Teachers Insurance and Annuity Association - College Retirement Equities Fund, to run the international portfolios. It hopes to begin marketing the effort this year.
The asset management firm, with $2.5 billion under management, also runs four offshore funds totaling $600 million and two U.S.-based no-load mutual funds, totaling $132 million. It is known for its hedge funds and value-oriented stock approach.
It plans to launch the first offshore fund to focus on the global beverage sector this month.
Also, its mutual funds - the First Eagle family, marketed to small pension funds, high net worth individuals and retail investors - are changing fee schedules.
By November, instead of a performance-based fee, the domestic fund will switch to a flat 1.5% expense ratio. The international fund, started last year, likely will do the same, to simplify accounting.
