Two former Goldman Sachs executives have beaten a record set by their old firm, raising a mammoth €440 million ($562 million, £294 million) in a listed hedge fund vehicle.

Emmanuel Gavaudan and Emmanuel Boussard, who quit Goldman in 2002 to set up their own hedge fund firm, Boussard and Gavaudan (B&G), were inundated with interest from investors.

Dealings begin today on Amsterdam’s Euronext market in shares of Boussard and Gavaudan Holding (B&GH), a special purpose investment vehicle to be invested in B&G’s flagship Sark Fund.

Sark is a single-strategy fund focused entirely on arbitrage plays in the equities and credit markets. It has achieved compound growth of more than 8 per cent in its first 3½ years.

B&GH is thought to be the first single-strategy listed hedge fund vehicle in the world and the money raised yesterday is the largest by any listed hedge fund.

Goldman Sachs raised $507 million for its London- listed fund of funds vehicle Goldman Sachs Dynamic Opportunities earlier in the year, while a rival fund of funds, CMA Global Hedge, raised $408 million.

While funds of hedge funds can float in London, diversification rules prevent single-strategy funds obtaining a London listing.

Recent floats of permanent capital vehicles on Euronext have received a patchy reception, with the private equity group Doughty Hanson forced to cancel a planned float.

B&G was braced for a difficult ride and originally expected to raise €100 million, but there was strong demand from private banks, family offices and institutional investors.

B&G, with offices in Paris and London, has €1.27 billion under management invested in Sark and other funds. The two co-founders own about 80 per cent of the equity.

B&GH can borrow up to 100 per cent of net assets to spice up returns.

B&G partners and staff have put in €28 million of their own money and are locked in for 18 months.

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