Leopold Aschenbrenner’s hedge fund, Situational Awareness, has made a $400 million investment in an undisclosed privately held company, according to Bloomberg.
The investment closed Tuesday, just days after the fund narrowly avoided collapse when lenders began issuing margin calls
The new investment adds to a $100 million stake Situational Awareness had taken in the company the prior month, Bloomberg reported, citing people who requested anonymity. The identity of the company was not disclosed. The move is the first sign of how Leopold Aschenbrenner intends to rebuild after his fund was pushed to the brink last week, when a rapid decline in its public technology holdings triggered escalating collateral demands from banks across Wall Street.
While scrambling to raise the necessary cash, he weighed offloading some of the fund’s positions in private companies. He eventually reached an agreement with Ken Griffin’s Citadel to divest most of the fund’s publicly traded holdings, a transaction that freed him to settle his debts with lenders while preserving the fund’s private investments. When the turmoil subsided, the fund’s total assets had dropped to around $10 billion, down from $45 billion at the beginning of July.