George Hicks, one of three former Cargill financial executives who launched Värde Partners in 1993, next year will be the last to phase out of managing the Minneapolis-based investment firm.
A lawyer by training, Hicks is the antithesis of the go-go stereotype of a hedge-fund jockey. He is thoughtful, methodical and careful with his words.
"We're a registered investment adviser and our funds are private," said Hicks, 67. "Our goal is to top equity-like returns of 8 percent to 9 percent with good downside protection. A bad deal is break-even. We fall into clients' alternative-investment bucket, along with private equity and venture capital."
Värde invests in the distressed debt of solid companies that are buffeted by recession, restructuring or other events. It raised $2.6 billion globally this year to do just that as a result of the recession.
Hicks and two co-founders, including Marcia Page, who is executive chairwoman of Värde's board, were successful at Cargill's financial unit. They wanted to spread their wings and own the results.
"Värde is doing well," Hicks said. "Our growth speaks to our performance. Over time, we've transformed from three partners at the water cooler to a proper firm with investment and other committees."
Värde, which gets its name from the Swedish word for value, has expanded beyond beaten-down debt to equity investments and operations in financial services and real estate.
Värde has invested $75 billion around the globe and manages $14 billion in assets. It has been in Europe and Asia for years. The Minneapolis-based firm boasts 320 employees, 16 partner-owners and 11 offices, including New York, London and Singapore.