Elliott, Indaba Alumni Said to Launch Activist Hedge Fund Irenic

(Bloomberg) -- Former Elliott Investment Management executive Adam Katz is partnering with Andy Dodge, formerly of Indaba Capital Management, to launch a new activist hedge fund this year that will focus on small to mid-cap companies, according to people familiar with the matter. 

The duo have already started raising capital for the fund, which will be called Irenic Capital, the people said, asking not to be identified because the matter is private. The firm has raised $250 million so far, including a $150 million commitment from the Fribourg family, owners of Continental Grain Co., the people said. 

Irenic has hired former Elliott Chief Financial Officer Josh Nadell as its own CFO and chief operating officer, the people said. It will have a team of about 10 employees at launch, they said. 

A representative for Irenic declined to comment. 

The firm is raising two funds: an evergreen fund and a private equity style draw-down fund, the people said. The draw-down fund seeks to raise about $600 million, the people said. The new firm plans to begin investing in the third quarter, they added. 

Irenic will run a constructive activist and event-driven strategy focused on small and midcap companies, with market values of $1 billion to $5 billion, the people said. 

Katz and Dodge were college roommates at Harvard. Katz spent several years at Elliott where he worked on many of its high-profile campaigns, including Alcoa Corp., Arconic Corp. and Howmet Aerospace Inc. Dodge, who was a partner at Indaba most recently, led investments in ClubCorp Holdings Inc. and Life Time Fitness. 

Katz is the latest Elliott veteran to start his own venture. Last year, former Elliott executive Franck Tuil started his own fund, Sparta Capital Management, which plans to invest in public and private companies around the world with a focus on Europe. 

James Smith, the former head of Elliott's operations in Hong Kong, also launched his own multi-strategy fund, Palliser Capital, in 2021. 

©2022 Bloomberg L.P.