Thomas Faust Buys Majority Stake in ReFlow Services at 67 to Back Mutual Funds
Updated
Updated · Bloomberg · May 12
Thomas Faust Buys Majority Stake in ReFlow Services at 67 to Back Mutual Funds
1 articles · Updated · Bloomberg · May 12
Thomas Faust, 67, took a majority stake in ReFlow Services, a firm that helps mutual funds manage investor redemptions; terms of the deal announced Tuesday were not disclosed.
ReFlow runs a private fund that buys shares of mutual funds seeking to offset outflows, giving managers a tool to meet redemption pressure.
Faust is buying out several investors, including ReFlow’s founder, some former executives and Figure Asset Management, a unit of Figure Technology Solutions.
The deal marks the next move for the former Eaton Vance chief executive, who previously engineered the asset manager’s sale to Morgan Stanley.
With a blockchain leader exiting, did ReFlow miss its chance to truly modernize mutual fund liquidity?
Is Faust's new venture a real fix for fund liquidity or a patch that introduces new systemic risks?