Eddie Lampert's $5 billion cash call

Posted Jun 11th 2007 7:40PM by Tom Taulli
Filed under: Berkshire Hathaway (BRK.A), Private Equity, Citigroup Inc. (C)

Over the years, the master hedge fund manager of ESL – Eddie Lampert – has made a fortune by scoping up big positions in ailing companies. Then with some operational magic, he turns things around. In fact, one of his latest investments is Citigroup (NYSE: C).

Because of his mega success, some think he's building the next Berkshire Hathaway (NYSE: BRK.A) and will become immortalized like Warren Buffett.

What's next for Eddie? Well, according to a report from CNBC's David Faber, Lampert is looking to raise between $3 billion to $5 billion. True, he already manages $18 billion. But why not get some more?

With the frothiness in the equity markets, I don't think he'll have any trouble getting what he wants. If anything, he'll probably be turning money away.

OK, so you want to invest with Eddie? First of all, there will be a five year lock-up on your money. And, yes, you'll need a minimum of $25 million.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Tags: Eddie Lampert, EddieLampert, ESL Investments, EslInvestments, Warren Buffett, WarrenBuffett