Download Verity Capital Partners, LP

Verity Capital Partners, L.P.
Verity Onshore Fund, L.P.
Multi-Strategy
IN V E S T M E N T PR O C E S S
The Fund’s strategy will be to identify and exploit global market inefficiencies, while minimizing its
exposure to market risk. The General Partner intends to achieve this objective through hedging its
investments, in an attempt to limit market sensitivity. The principal strategies that will be used: eventdriven investing, equity long/short investing and fixed income investing.
RI S K M ANAGEMENT
The General Partner has developed proprietary models designed to monitor the percent of capital and the
percent of assets of each position and each strategy. The General Partner intends to have no position
larger than 5% of the Fund’s total assets. There are several off-the-shelf risk products the General
Partner is evaluating, in addition to considering offerings from the Fund’s Prime Brokers. The General
Partner expects net exposure for the entire fund to be between -20% and 20%. The General Partner
expects net exposure on specific portions of the portfolio to vary depending on the amount of assets
dedicated to each strategy: the Fund’s net exposure may be greater in our fundamental directional equity
portfolio based on the General Partner’s investment opinions; the relative value arbitrage portfolio should
have zero net exposure based on the principles of that investment strategy, but may vary slightly based
off of prices of individual securities. Additionally, depending on the events and the consideration in to be
received specific deals, the exposure in the event-driven strategy will vary.
The General Partner’s investment portfolio will be marked daily and verified by our Prime Broker and back
office.
The General Partner’s risk management committee will meet weekly to coordinate risk management.
Risk will be diligently monitored on a daily basis so that the General Partner does not extend the selfimposed boundaries set forth above.
FIRM B ACKGROUND
Verity Onshore Fund, L.P., a Delaware limited partnership (the “Fund”), was formed to invest in global
securities markets while minimizing exposure to market risk through hedging and other investment
strategies that are not market-sensitive, including equity long/short investments, event-driven investments
and fixed income investments.
The Fund is operated by Verity Capital Partners, L.P., a Delaware limited partnership which serves as the
general partner of the Fund (the “General Partner”) and manages its investments. The General Partner
was organized in 2005 and its principal offices are located in Fort Worth, Texas.
Verity Capital Partners, L.P. was founded in February 2005, by a team of five experienced investment
professionals who had previously worked together at one of the world’s largest market neutral multistrategy hedge funds. During their time at their former employer the founding partners, helped develop
and manage several successful businesses and office locations. The founding partners intend to leverage
their multiple years of investment management and business building experience to create a global
investment management business focused on producing absolute returns for their limited partners with a
limited amount of investment capital. Verity believes that absolute returns can be effectively and efficiently
produced through the combination of low leverage and a limited asset base.
PRINCIPALS
Rory P. Connor, Founding Partner and Chief Investment Officer
Mr. Connor is a founder and the managing partner of Verity Capital Partners, L.P. and a member of the
management and investment committees. As managing partner, he coordinates investment and business
management operations. Mr. Connor is active in the management of the equity portfolios. Mr. Connor
was the senior analyst on a $1.5B domestic and international risk arbitrage, special situations and latestage distressed debt and equity portfolio at Carlson Capital, L.P. for 8 years. During Mr. Connor’s tenure
at Carlson Capital, assets under management grew from approximately $300 million to nearly $5 billion.
His responsibilities included comparative transaction and equity analysis, market competition analysis
and regulatory risk assessment for risk arbitrage deals, in addition to researching distressed debt
opportunities. While at Carlson Capital, Mr. Connor was also instrumental establishing the firm’s London
office. Prior to returning to business school, Mr. Connor was a financial research analyst at Buis & Co., a
merger and acquisition advisory firm, in Fort Worth and a journalist for Morris Communications Corp. Mr.
Connor received an M.B.A. from the University of Texas at Austin, where he was a Dean’s List student
and a B.A. in English from the University of Vermont, where he was also a Dean’s List student.
R.W. Bo French, Founding Partner and Chief Operating Officer
Mr. French is a founding partner of Verity Capital Partners, L.P. and a member of the investment and
management committees. As Chief Operating Officer he oversees the business operations, the back
office, marketing and investor relations. He will also supervise the trading operations of the firm. He was
a trader at Carlson Capital, L.P. for 8 years. For 6 years, Mr. French was the energy portfolio trader and
preceding those responsibilities he traded the relative value and risk arbitrage portfolios and helped build
institutional trading relationships on Wall Street. During Mr. French’s time at Carlson Capital, assets
under management grew from approximately $200 million to nearly $5 billion. Preceding Carlson Capital,
Mr. French was employed by an independent oil company and was General Manager for one of the
largest ranching operations in Texas. He received a B.A. from Texas Christian University and completed
a ranch management graduate program.
B. Scott Lydick, Founding Partner and Director of Research
Mr. Lydick is a founding partner and manages portions of the equity portfolios of Verity Capital Partners,
L.P. He is a member of the management and investment committees. Mr. Lydick was a risk arbitrage and
distressed debt analyst, in addition to being a relative value analyst that covered global paper and forest
product companies and other industries at Carlson Capital. His responsibilities included comparative
transaction and equity analysis, market competition analysis and regulatory risk assessment for risk
arbitrage deals, in addition to researching distressed debt and relative value arbitrage opportunities.
During Mr. Lydick’s tenure at Carlson Capital, assets under management grew from approximately $1
billion to nearly $5 billion. Mr. Lydick received a B.B.A from the University of Texas at Austin. Mr. Lydick
is currently a Level III candidate for the Chartered Financial Analyst designation
Lana M. Beeter, Founding Partner and Operations Manager
Mrs. Beeter is the operations manager at Verity Capital Partners, L.P. Prior to joining the firm, Mrs.
Beeter held the same position at Carlson Capital, L.P., where she worked for 6 years. During Mrs.
Beeter’s time at Carlson Capital, assets under management grew from approximately $800 million to
nearly $5 billion. Her responsibilities at Verity include prime brokerage relationships, trade settlements
and reconciliation, stock borrowing, corporate actions processing, cash management and end of day P&L
verification. Mrs. Beeter also worked in the accounting department at Carlson Capital, where she was
responsible, at different times, for the monthly financial books, tracking investor contributions and
distributions, corporate actions across portfolios, 144a registration and monitoring and rebate and margin
interest bookings. Preceding Carlson Capital, Mrs. Beeter worked as an accountant for Texas Refinery
Corp in Fort Worth, in marketing and special projects for the First National Bank of Trenton (TX) and as a
credit/loan review analyst and accountant at Lubbock National Bank. She graduated from Texas Tech
University with a B.B.A in finance and marketing.
Sandra D. Howell, Founding Partner and Controller
Ms. Howell is the Controller of Verity Capital Partners, L.P. and a member of the management committee.
She is an accountant with over 12 years of investment accounting experience. Prior to joining the firm,
she served as the financial manager of corporate accounts at Carlson Capital, L.P., where she worked for
over 8 years. Her responsibilities included managing the accounting and reporting functions of the funds,
Carlson Capital, L.P. and its affiliates, and other compliance issues of the firm. During Ms. Howell’s time
at Carlson Capital, assets under management grew from approximately $100 million to nearly $5 billion.
Preceding Carlson Capital, Ms. Howell was the controller for a graphics arts company, NVision Graphics,
and worked for the Bass Brothers as an investment securities accountant. She graduated from Texas
Wesleyan University with a B.S. in accounting.
G E N E R A L FU N D INFORMATION
Contact Information
Name:
R. W. Bo French
Address:
Main Phone:
Other/Mobile:
301 Commerce Street, Suite 1399, Fort Worth, Texas 76102
(817) 204-0602
(817) 919-6969
Fax:
E-Mail:
(817) 348-0976
[email protected]
Fund Information
Firm AUM (as of date):
Fund AUM (as of date):
Firm Inception Date:
Fund Launch Date:
Valuation Currency:
February, 2005
October, 2005
United States Dollar
Geographic Focus:
Domicile:
Minimum Investment:
Global
Cayman Islands
$3 million
Redemptions:
Redemption Notice:
Redemption Penalty
Quarterly
45 days
5%
Additions:
Lock Up:
Management Fee:
Monthly
1 year from each subscription
1.5%
Performance Fee:
Hurdle Rate:
20%
None
High Water Mark:
Fund Administrator (Onshore/Offshore):
Listed:
Yes
TBD
Auditor(s):
Prime Broker(s):
TBD
Credit Suisse First Boston LLC,
Goldman, Sachs & Co.
Legal Counsel:
Regulated (If applicable):
Haynes & Boone
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