Schroders acquisition of NewFinance Capital, the London-based funds of hedge funds manager, is now complete following receipt of FSA approval.

Schroders existing funds of hedge funds business has been merged into NewFinance Capital to create a global funds of hedge funds business with USD 3.3 billion of assets under management.

The three managing partners of NewFinance Capital, Marc Hotimsky, Georges Saier and Thorkild Juncker, have responsibility for the combined business.

Hotimsky and Saier, co-founders and managing partners of NewFinance Capital, said:  'We will continue to run NewFinance Capital as a dynamic, separate funds of hedge funds team, and we have had positive reactions from our clients around the globe.'

Commenting on the transaction, Michael Dobson, CEO of Schroders said: 'The acquisition strengthens our capability in alternatives and broadens our product offering to clients with a range of institutional quality funds. It gives us critical mass in an asset class which is increasingly in demand by institutional investors.'