UK-based fund manager Isis Asset Management is negotiating to take a 15% stake in start-up Irish hed...
UK-based fund manager Isis Asset Management is negotiating to take a 15% stake in start-up Irish hedge fund manager Cardinal Asset Management. The deal would allow Isis to brand and market Cardinal"s products in the UK and Europe.
Although Cardinal is a start-up, two of the three main founders, Nick Corcoran and Paul Kearney, were directors at Zurich Capital Markets which, until its sale in 2003 to BNP Paribas, had raised more than $10bn in alternative asset exposure. Nigel McDermott, the third founder, was a also a founding director at International Investments & Underwriting, an absolute return asset manager.
Jason Hollands, head of communications and strategy at Isis, said: "Our one hole in a diversified business is hedge funds. This is the fastest-growing segment of the investment management industry as we see a move away from benchmarks by indices to absolute returns. We want exposure to hedge funds without disrupting the business and a stake provides new revenues and the ability to market products in the UK and Europe in institutional and retail space."
At Zurich, the Cardinal founders had experience in developing funds of hedge funds, individual hedge funds and protected products with hedge funds as the basis for the product, although he said it was too early to say what would be released.
Cardinal said it would offer institutional-level of product structuring, risk management, transparency and reporting detail and could handle up to $5bn under management. It is looking for resellers in markets outside Europe and hedge fund managers. Corcoran said: "The alternative asset industry is moving beyond its pioneering and fragmented phase."
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation