Pioneer Investments, a subsidiary of UniCredito Italiano, has bought fund of hedge fund group Moment...
Pioneer Investments, a subsidiary of UniCredito Italiano, has bought fund of hedge fund group Momentum in a move designed to pave the way for aggressive expansion in the alternative investment market.
Pioneer Alternative Investments' focus has been on single manager/strategy funds and Italian-domiciled funds of hedge funds. The acquisition of Momentum will take the company into the fund of hedge funds market for $110m.
Dario Frigerio, chief executive officer of Pioneer Global Asset Management, which has E100bn under management, said: 'The acquisition broadens the group's offering and strengthens our existing alternative investments capabilities, adding further funds to Pioneer Alternative Investments's exist-ing range of funds.
'Momentum brings particular expertise in the funds of hedge funds market, which is expected to be one of the key areas of growth in the coming years. It also brings a complementary distribution network, which allows Pioneer Investments to dramatically increase its market penetration worldwide.'
As part of its expansion, Pioneer Investments plans to be among the first companies to exploit developments in Asia, where regulators are making retail investment into hedge funds easier by allowing lower initial entry levels.
Before the acquisition of Momentum, Pioneer Investments had offices in Boston, Buenos Aires, Dublin, Hong Kong, Madrid, Miami, Milan, Munich, Paris, Prague, Singapore and Warsaw. Momentum added offices in Australia, Bermuda, Hong Kong, Israel, London and New York.
Pioneer Investments also plans to open an office in Switzerland early in 2003.
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