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Newalpha AM raises $250m in seed capital for long-only strategy

Friday, January 23, 2015
Opalesque Industry Update - In the wake of the convergence between mainstream and alternative asset management, NewAlpha AM expands the scope of its activities beyond hedge funds to Long Only Equity funds. The success of this new orientation is marked by 250 million dollars in capital fund raising from 12 institutional investors, several among the largest and most influential in France, for the closing of the Long Only Equity sub-fund of “Emergence”, the major French seeding platform.

For its Long-Only Equity strategy (sub-fund of French SICAV “Emergence”, created at the initiative of Finance Innovation and with the support of the French Asset Management Association (AFG) and Paris Europlace, and currently closed to new subscriptions), NewAlpha AM selected two innovative and promising asset managers for their potential to deliver higher returns, and injected 90 million dollars in acceleration capital. In doing so, NewAlpha AM lowers entry barriers for institutional investors.

Founded by Frédéric Motte and Jérôme Archambeaud in 2011, Focus Asset Managers (AM) is specialized in value investing and concentrates specifically on the consumer goods, manufacturing and services sectors (all caps). Focus AM’s flagship fund manages 150 million dollars in AuM and has one of the best 10-year track-records in its category.

Jean Baptiste Delabare and Sébastien Lalevée, specialized in European and French equities respectively, took over Financière Arbevel in 2009. In just five years, the asset management firm has grown exponentially, going from 30 to 300 million euros in AuM. Its all-caps equity fund was awarded a Lipper Fund Award 2014 - French equities category, in recognition of its management over the last five-year period.

The remaining 160 million dollars in dry powder will be invested over the course of 2015.

Philippe Paquet, Managing Partner at NewAlpha AM, says “For a number of years now, NewAlpha AM has been among the leading platforms in the hedge fund arena. We absorbed Next AM in 2013 and focused our efforts in 2014 on consolidating our business model. In 2015, we intend to build on our skill set and develop business globally. We are witnessing a clear demand for investment solutions at the crossroads of private equity, absolute return and long only investing. Going forward and to leverage our new capabilities, we are going to diversify into pure Private Equity and launch at least one fund in 2015.”

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