NRI steel magnate Lakshmi Mittal has become a major investor in RAB capital, a pan-European fund management and investment firm, with a singular primary focus on hedge funds.
The Mittal family bought a 4.48 per cent stake in RAB after the company's two founders raised a combined 25 million pounds from selling shares.
The Mittals were among 14 buyers of the shares, but only one other party was named - Sofina, the Belgian company controlled by the Solvay family, which is one of Europe's wealthiest dynasties, bought a 5.5 per cent share.
Backing from such high profile investors represented a coup for RAB, which has made its name by being a prolific backer of small mining and energy stocks. It said two other billionaire family trusts were among yesterday's investors.
Co-founders Philip Richards and Michael Alen-Buckley each netted 12.5 million pounds by selling stakes of 6.22 per cent; they still retain interests of 31.1 per cent.
Richards, who was paid 5.4 million pounds as chief executive last year, said the disposals were part of RAB's progress to "becoming a real company."
"You make companies that are long lasting and self- sustaining by broadening them out in all senses," he said.
{{/usCountry}}"You make companies that are long lasting and self- sustaining by broadening them out in all senses," he said.
{{/usCountry}}"We have been broadening the range of our funds and we are now broadening our share-holder base.
"Having a listed company in which 80 per cent was in the hands of two people was not sustainable in the long-term."
The Mittal and Solvay families are both investors in RAB funds.