Sowood separates private equity from hedge fund business

Denham anticipates that it will operate fully independent of Sowood as of 1 July 2007, according to a statement. Denham will manage approximately $2.3bn of invested and committed private equity funds at inception.

'Over the last two years our private equity capability has grown tremendously,' said Jeff Larson, founder of Sowood. 'At this point, we essentially have completely independent investment businesses. By formalising that independence, we believe we maximise the flexibility - and opportunity for success - of each business.'

Stuart Porter, managing partner responsible for Sowood's private equity funds, will become founding partner of Denham. The 32 Sowood employees currently dedicated to its private equity group will join Denham, the firm said.

Porter commented, 'The entire private equity team is excited to build on the strong foundation developed at Sowood. I have been fortunate to work with great people at both Harvard Management Company and Sowood, I look forward to continuing those relationships, while opening a new chapter with the people joining Denham. We could not be more prepared for the task.'

Sowood will continue to manage the Sowood Alpha Funds and be led by managing partners Jeff Larson and Megan Kelleher. A total of 59 employees dedicated to the Alpha Funds' management will remain at Sowood.

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