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Hermes and Northern Lights invest in Altalis
15 August 2013
Second allocation for early-stage and emerging manager investment fund
Hermes BPK Partners
Northern Lights Capital Group
Altalis Capital Partners
Hermes BPK Partners and Northern Lights Capital Group have made an early-stage investment in emerging hedge fund Altalis Capital Partners.
The investment was made through the two firms' Accelerator Fund vehicle, which provides early stage capital to hedge funds in return for a fixed duration share of future revenues.
Altalis, a New York-based fund that invests using a value-oriented long/short equity strategy, currently manages around $150m.
It is co-managed by Adam Fox and Samuel Elder, former partners and co-heads of North American equity investing at Taconic Capital, who also worked together in private equity at Goldman Sachs Capital Partners.
Mark Barker, founding partner and co-chief investment officer of Hermes BPK Partners, said Altalis had “two talented investors with outstanding pedigrees” and “a differentiated offering in a space where there is clear demand for their strategy”.
“The long/short equity strategy currently makes up around a third of all institutional hedge fund searches and if a fund can demonstrate solid returns and an institutional infrastructure demand can grow quickly as investors recognise that the best managers often constrain capacity to maintain returns,” he added.
The Accelerator Fund has previously invested in long/short credit manager Taurasi Capital and has targeted allocations of $250m in its first year.
Paul Greenwood, managing director of Northern Lights Capital Group, said: “Northern Lights and Hermes BPK have created a platform that seeks meaningful return enhancement from investing in emerging managers, while significantly mitigating manager risk through active engagement and support.
“We believe the resources of this partnership are unsurpassed with regards to hedge fund sourcing, operational due diligence, structuring of transactions and post-investment marketing and distribution support.”