The Rose Lake Capital Website
As noted above, the Rose Lake website is roselakecap.com If you don’t want to bother to see it, I’ll describe it. The first page and only page is titled “Exclusive Partnerships for Global Operators.”
Then comes “Unparalleled Previous Experience.” Below that it states: 5 diplomats; $60B AUM (Assets Under Management); 11 Free Trade Agreements Signed; 80+ Countries Where We’ve Worked. Below those notes there is a description of what Rose Lake Capital does.
“Rose Lake is focused on unique global opportunities where our experience can create bespoke solutions for our clients and partners.
“Our team of world class experts harness their combined centuries of experience, and deep global networks built from on-the-ground work in more than 80 countries working across business, politics, banking and diplomacy. Our expertise includes structuring deals, mergers and acquisitions, debt restructuring and capital raising. From distressed assets to buying publicly traded companies – our team has the prowess to execute the right opportunities.
“At Rose Lake we tap into our extensive global network to create strategic partnerships to maximize the strength of the businesses we partner with.”
That’s it. Now let’s unpack the claims Rose Lake Capital makes on its website.
5 Diplomats: The names have been quietly scrubbed on the website, but they were listed by the New York Post as: Lobbyist and former Obama Ambassador to Bahrain Adam Ereli; former Senator and Obama Ambassador to China Max Baucus; DNC Finance Chair associate Alex Hoffman; former DNC treasurer William Derrough; and former ex-CEO of Amalgamated Bank Keith Mestrich, who once described Amalgamated as “the institutional bank of the Democratic Party.”
Hailer’s name has also been scrubbed from the website, and his LinkedIn profile no longer lists Rose Lake Capital among his current activities. Offhand, I’d assume he realizes that he looks like he’s trying to absent himself from the impending investigations.
11 Free Trade Agreements. This claim can be dismissed because only governments can create Free Trade Agreements.
80+ Countries Where We’ve Worked. No countries are listed.
$60B AUM. Now $60 billion dollars under management would make any Wall Street tycoon come to attention! A firm that is managing 60 billion dollars would need an infrastructure, substantial staff, filings, and a regulatory footprint. You cannot quietly manage 60 billion dollars.
Real U.S. asset managers usually appear in SEC databases, financial regulator records, and public disclosures. I could find none.
Rose Lake Capital’s address is 80 M Street SE, Floor 1, Washington DC, 20003. It is a WeWork building. That means it could not house a major asset management company. Furthermore, if Rose Lake Capital does have $60 billion under management, the fees would be reflected in its revenue. Let’s examine the fees that could be earned by managing 60 billion dollars.
A 0.5% fee would earn $300 million per year. At 1% it earns $600 million per year. At 2% it earns $1.2 billion per year.
For a typical hedge fund, it’s a 2% management fee plus 20% of the profits. If the hedge fund has a $60 billion portfolio that earns 8% annually, the fee would be 2% for $4.8 billion in gains plus 20% of that — a $960 million performance fee. In a good year, that’s a total revenue of $2.16 billon! That is serious money and it takes a lot of serious people to earn it. Not just a desk in a WeWork building.
Where are those serious people?