New fund manager to invest in troubled funds robinshood

ROBINSON, N.Y. — The founder of a troubled fund in New York’s Hudson Valley has been tapped to invest with the owners of a popular New York City-area casino, according to people familiar with the matter. 

Nate Hickey, who founded the Frontier Capital Management fund in 2016, is the chief executive officer of the Frontier Development Corp. of Hudson Valley. 

Hickey is one of the founders of the Hudson Valley Economic Development Corp., the largest private economic development fund in the region, according the Frontier website. 

The Frontier Development Corporation is an economic development agency that manages a $10 billion portfolio of projects including development of infrastructure and parks in Hudson Valley, according Frontier. 

On Wednesday, the Frontier Management Co. said it is investing $1.3 billion in the Frontier Investment Corp. and $3 billion more in the Hudson Venture Fund, the largest venture capital firm in New Jersey, the company said.

Hickey and his partners, Mike Zahn and Michael Schoenberg, are the sole investors in the two funds. 

“They’re bringing together a great group of investors to create a powerful, innovative investment platform for investors in New Yorkers and their families,” said Mike Zohn, Frontier’s chairman and chief executive. 

Funds for the Frontier and the Hudson Development Corp.’s investment in the casinos are being financed through Frontier Development’s equity.

Frontier Investment, the fund’s investors, include the company’s investors in Frontier, including the Frontier founders, and Frontier’s partners in Hudson Venture, including Frontier’s investment partners in the Valley, said Zohn. 

It was unclear how much Frontier Investment and the Frontier Venture Fund would receive in funding from Frontier Investment.

Frontier has been involved in several failed investments in casinos and other businesses, according a recent report from the state comptroller’s office.

Hickie said he has had no discussions with the Frontier, the Hudson or any other group about funding for Frontier or Hudson. 

Zahn and Schoenburg were not immediately available for comment. 

New York State Comptroller Thomas DiNapoli said in a statement that it is important that investment opportunities for people like me and those of us in the community are aligned.

He also said that it’s important to be mindful of our fiduciary responsibility to our investors. 

I am confident that the Frontier will find the investment opportunities that are right for them. 

At a news conference on Wednesday, DiNapololi called on the Frontier to divest from casinos and the Valley Development Corp, which operates several casinos in the New York State area.

He said that if they were going to divest, it should be for a long-term investment and not to get out of the business of gambling.

Hedge funds often take in a portion of a company’s income to invest, sometimes at a discounted rate, in the company, often at higher fees, to help offset expenses. 

An attorney for the two hedge funds did not immediately respond to a request for comment Wednesday. 

A number of New York casino operators have been targeted in recent years for fraud or tax problems, and the hedge funds have been blamed for some of the problems, including a massive loss in the 2014 bankruptcy of the Atlantic City casino that is now under federal investigation for tax evasion.