BET founder starts hedge fund

Robert L. Johnson, the founder of Black Entertainment Television, today announced that he has signed a letter of intent with Deutsche Asset Management (DeAM), the asset management division of Deutsche Bank AG, to form and operate a hedge fund under his holding company RLJ.

The RLJ Companies, Mr. Johnson's holding company, will form the new company with the goal of becoming the largest asset management company owned, controlled, and directed by African-Americans. DeAM will serve as a minority investor and as a provider of investment strategies and expertise for the joint venture.

"This alliance will help us significantly grow the more than $800 million in assets The RLJ Companies has under management including the $315 million RLJ Urban Lodging Fund," said Bob Johnson, founder and Chairman of The RLJ Companies. "Through this strategic relationship with Deutsche Asset Management, The RLJ Companies will also have a platform to target public and private pension funds as well as other institutional investors with strategic, absolute-return investment vehicles."

The new hedge fund, which will offer investment products to pension funds and institutional investors, is the first of many businesses Johnson is planning.

In addition to offering hedge fund of funds products, The RLJ Companies will also have a platform to market traditional asset management products utilizing the investment services and expertise of DeAM.

"I'm going to consolidate all of my holdings, staff group, hotel groups, everything," he said. "And a few new things we're planning to announce."

Johnson, who sold BET to Viacom Inc., in 2001 for $3 billion owns a hotel real estate investment company, the Charlotte Bobcats NBA basketball team, and Rollover Systems, which provides retirement plan rollover services.