What Paloma Partners does

Paloma Partners is a privately held multi-strategy hedge fund and multi-manager platform founded in 1981 by Donald Sussman, headquartered in Greenwich, Connecticut with a New York office. The firm operates a dual-sided model: it partners with established emerging hedge fund managers — supplying capital, operational infrastructure, and strategic support — and aggregates those managers into a multi-strategy portfolio offered to institutional investors via separately managed accounts (SMAs). Paloma has backed 130+ managers since inception across four core strategies: Systematic, Credit Relative Value, Fundamental Long/Short Equity, and Volatility/Capital Structure Arbitrage.

The firm generates revenue through standard hedge fund economics — management fees (typically 1–2% of AUM) and performance fees (typically 20% of profits) — applied to its approximately $1.1 billion AUM base. GTM motion is relationship-driven and enterprise-focused, engaging institutional LPs and emerging managers directly without intermediary distribution. The platform is differentiated by a "founder-aligned, non-predatory" capital structure and bespoke partnership terms intended to attract experienced managers at career inflection points who view larger seeding platforms as transitory.

Between 2024 and 2026, Paloma substantially rebuilt its senior leadership (CEO Ravi Singh, CRO Grant Rippetoe, COO Michael DeAddio, CFO Pei Ng, GC/CCO David Friedman) and completed a broad Q1 2026 organizational revamp encompassing technology and operations rebuild, process outsourcing, and approximately 12 personnel cuts including the CSO, CMO, and deputy CCO. The firm is SEC-registered, with Cayman DPA and CCPA compliance supporting its institutional and offshore fund structure.

Name

Paloma Partners

Legal name

Paloma Partners Management Company

Website

https://paloma.com

Company type

Private

Founded year

1981

Operating status

Operating

Headcount range

101–250 employees

Short description

Paloma Partners is a privately held, Greenwich-based multi-strategy hedge fund and multi-manager platform founded in 1981. It seeds and partners with established emerging managers across four strategies (Systematic, Credit Relative Value, Fundamental Long/Short Equity, Volatility/Capital Structure Arbitrage) and offers institutional investors access via separately managed accounts against a ~$1.1B AUM base.

Ownership category

akta.pro rank

Product category

Multi-Manager Hedge Fund Platform

NAICS

Portfolio Management and Investment Advice (52394), Other Investment Pools and Funds (5259), Other Financial Vehicles (525990)

SIC

Investment Advice (6282)

akta.pro primary industry

Multi-Strategy — Multi-Manager Platform (Pods) (FSAHAFAA)

akta.pro secondary industries

Multi-Manager / Multi-PM Platforms (FSAHAKAD), Multi-Strategy — Multi-Asset Tactical / Opportunistic Trading (FSAHAFAJ)

Keywords

• Multi-strategy hedge fund
• Multi-manager platform
• Emerging manager seeding
• Alternative asset management
• Separately managed accounts

Headquarters

HQ city

Greenwich

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Investment Management Fees: Paloma Partners generates revenue through management fees and performance fees (carried interest) from its hedge fund operations. The firm manages approximately $1.1 billion in assets across its multi-strategy portfolio, generating returns from manager partnerships.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

Paloma Partners operates a multi-manager hedge fund platform that partners with established emerging managers, providing them with capital seeding, operational infrastructure, and strategic support to scale their investment businesses. The firm offers institutional investors a diversified multi-strategy portfolio spanning systematic, credit relative value, fundamental long/short equity, and volatility/capital structure arbitrage strategies, with each manager allocation structured as a separately managed account.

Product overview

Paloma Partners operates as a multi-manager hedge fund platform offering institutional multi-strategy capabilities. The platform provides a differentiated multi-strategy portfolio comprising four core investment strategies: Systematic, Credit Relative Value, Fundamental Long/Short Equity, and Volatility/Capital Structure Arbitrage. These strategies are delivered through a partnership model with established emerging managers, where each allocation is structured as a separately managed account. The platform offers capital seeding, operational infrastructure, and strategic partnership to help managers scale their businesses while maintaining focus on alpha generation.

Differentiator

Problem solved

Functional benefit

Products and services

• Multi-Manager Platform A platform that partners with established emerging hedge fund managers, providing capital, operational infrastructure, and strategic support to help them scale their investment businesses. Targets institutional investors seeking exposure to a differentiated multi-strategy portfolio of mature emerging managers.
• Systematic Strategy Quantitative trading strategies deployed across the liquidity and frequency spectrum, leveraging shared infrastructure for data integration and execution. Designed for institutional investors seeking systematic alpha.
• Credit Relative Value Strategy Relative value, long/short and convertible strategies targeting scalable, liquid opportunities across the credit spectrum. Available to institutional investors via separately managed accounts.
• Fundamental Long/Short Equity Strategy Fundamental long/short equity strategies with sector-specific depth, targeting market-neutral or low-net approaches. Available to institutional investors via separately managed accounts.
• Volatility/Capital Structure Arbitrage Strategy Capital structure arbitrage, volatility trading and event-driven approaches capturing structural inefficiencies. Available to institutional investors via separately managed accounts.
• Separately Managed Accounts Each manager allocation across Paloma's multi-strategy portfolio is structured as a separately managed account, providing investors with transparency, customization, and direct exposure to individual manager strategies.

Quantifiable outcome

• 8% gain in 2025; recovered to positive 0.1% through mid-April 2026 after being down 2.9% through March

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators4 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Bridgewater Associates: Bridgewater is the world's largest hedge fund and operates a systematic, multi-strategy platform. While much larger and more macro-focused, it competes for the same institutional multi-strategy allocations Paloma targets.
• Two Sigma Investments: Two Sigma runs a multi-strategy, technology-driven investment platform combining systematic and fundamental approaches. It overlaps with Paloma's systematic strategy and competes for institutional multi-strategy mandates.

Direct peers

• Schonfeld Strategic Advisors: Schonfeld is a multi-manager, multi-strategy hedge fund platform that hosts multiple internal pod managers with shared risk and operational support, mirroring Paloma's emerging-manager platform thesis.
• Point72 Asset Management: Point72 is a multi-strategy, multi-manager platform founded by Steven Cohen that seeds and hosts portfolio managers with central risk and operations infrastructure—directly comparable to Paloma's emerging-manager platform model.
• Millennium Management: Millennium is the largest multi-strategy, multi-manager hedge fund platform globally. It operates the same pod-based model of seeding and hosting multiple internal portfolio managers with shared infrastructure, making it the closest large-scale analogue to Paloma's platform.
• Capula Investment Management: Capula is a multi-strategy hedge fund deploying capital across fixed income relative value, credit, and macro strategies—overlapping Paloma's Credit Relative Value and Volatility/Cap Structure Arbitrage strategies.
• Eisler Capital: Eisler Capital is a multi-strategy hedge fund with systematic, discretionary macro, and credit strategies run via internal multi-PM structure, comparable to Paloma's multi-strategy multi-manager model.
• Balyasny Asset Management: Balyasny runs a multi-strategy, multi-PM platform with similar seeding and capital allocation model. It competes directly with Paloma for both emerging-manager talent and institutional LP capital.
• Citadel LLC: Citadel operates the world's largest multi-strategy hedge fund platform with internal multi-PM structure and central risk management, paralleling Paloma's approach at significantly greater scale.
• ExodusPoint Capital Management: ExodusPoint is a multi-strategy hedge fund deploying capital across systematic, fundamental equity, credit, and macro strategies—directly comparable to Paloma's four-strategy multi-manager offering.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Paloma Partners