Treasury Secretary Mnuchin sells Dune RE stakes

The Dune Capital Management co-founder exited his interests for at least $4m to comply with conflict of interest rules.

Treasury Secretary Steven Mnuchin has sold his stakes in Dune Real Estate Partners, the offshoot of a hedge fund he founded, according to documents filed with the Office of Government Ethics last week.

Mnuchin, a former Goldman Sachs partner, founded New York-based hedge fund Dune Capital Management in 2005 with other Goldman alumni, including Daniel Neidich, who was head of the New York investment bank's real estate group.

In 2010, Neidich transitioned the hedge fund's real estate holdings to a separate firm, Dune Real Estate Partners, and Dune Capital Management was wound down. Dune Real Estate Partners now has $2.2 billion of assets under management and is raising its fourth value-added fund, according to PERE data.

In May, Mnuchin sold his stake in DREP II and Dune Real Estate Partners for at least $2 million each, according to a certificate of divestiture released last week. Mnuchin, who is not listed on Dune's website, owned a 2.7 percent stake in Dune Real Estate Partners II, according to a March filing with the OGE. The value-added fund closed on $794 million in May 2009, according to PERE data. Neither the size of his interest in Dune Real Estate Partners nor the buyer or buyers of the stakes were disclosed. The firm could not be reached for comment.

Mnuchin reported $271,737 in income from his stake in DREP and $1.2 million in income from his interest in DREP II in a January filing with the OGE. The Treasury Secretary, who was confirmed in February, could not be reached for comment.

In June, Mnuchin said he had completed the necessary divestitures to comply with federal conflict of interest rules, according to an OGE filing.