Opalesque Industry Update –
NewAlpha Genesis 4 is a contractual fund currently being established with a view to invest in French and foreign
hedge funds ran by early-stage fund managers. |
NewAlpha AM aims to raise €200 million from European institutional investors, family offices, private banks and sovereign funds. The closing date is scheduled for end-October 2010**.
NewAlpha Genesis 4 plans to take full advantage of favourable supply and demand conditions on behalf of institutional investors. Increasingly stringent regulations and consolidation in the asset management industry are encouraging many talented fund managers to branch out on their own. At the same time, institutional investors are reluctant to invest in these young, less-established managers, which results in highly advantageous terms for seeders, who have thus proved to be a vital link in the asset management value chain.
As a pioneer in hedge fund seeding, NewAlpha AM has invested a total of €380 million in 14 mostly foreign fund managers since its inception in 2003.
Antoine Rolland, NewAlpha’s CEO and CIO, believes: “The crisis in 2008 prompted investors to pool their positions with the most established managers, generating major concentration risks and depriving them from the innovative potential offered by smaller, young fund managers. These early-stage managers deliver higher returns, mainly due to their relatively pure investment style and their adaptability to increasingly turbulent market conditions.”
NewAlpha’s investor relations managers, Philippe Paquet and Clarisse Anger, commented: “NewAlpha Genesis 4 offers institutional investors an attractive diversification vehicle by providing them with transparent access to the most promising hedge fund managers and enabling them to participate to their growth. Aligning the interests of seeded fund managers and institutional investors is a strategy that is very much appreciated in today’s market.”
NewAlpha is a subsidiary established in 2003 to support the development of early-stage and emerging fund managers. NewAlpha AM offers institutional investors secure access to newly-established fund managers through a range of innovative products that offer a good strategic fit with traditional multi-manager funds. Since its inception, NewAlpha has invested a total of €380 million in 14 fund managers on behalf of French and Swiss institutional investors. www.newalpha.net