Nara Capital, a specialist fund management company established last October in Geneva to manage a range of portfolios and customised mandates for institutional investors seeking exposure t
Nara Capital, a specialist fund management company established last October in Geneva to manage a range of portfolios and customised mandates for institutional investors seeking exposure to so-called ‘new alternatives’, has launched an asset-based lending fund of funds.
The Vermont Asset Finance Fund aims to provide strong and consistent returns uncorrelated to equities or other hedge funds strategies. The fund will be distributed by Laven Partners in the UK.
The Cayman-based fund is aimed at professional investors and will target annual returns of between 10 and 14 per cent with very low volatility. It will be managed by Nara Capital managing partners Dominique Grandchamp and Louis Zanolin.
Both have significant experience within the fund of hedge funds industry, most recently as portfolio managers and senior hedge fund advisors at Peak Partners, a Swiss-based fund of hedge funds manager formerly known as Harcourt Partners that specialises in managing asset-based lending portfolios.
‘True asset-based lending strategies can provide excellent risk-adjusted returns, but require specific market knowledge and a disciplined investment process,’ Grandchamp says. ‘Our team has extensive experience in asset-based lending investing and a strong performance record.
‘Regulatory changes, coupled with the current situation in the credit markets, will reinforce the need for investors to look for alternative types of financing investments such as asset-based lending, which will increasingly be provided by hedge funds. We believe this makes it an ideal time to launch the fund.’
Jérôme de Lavenère Lussan, managing partner at Laven Partners, adds: ‘Nara’s approach to due diligence is very thorough and focused, thanks to the experience of the management team and their close understanding of the underlying strategies.
‘The managers have the potential to select asset-based lending funds that offer the best risk/reward profile for their investors. Investors are looking for professionally-managed strategies that can generate double-digit annualised returns without increasing volatility or correlation. We believe this team is perfect for the task in the current market conditions.’
The fund’s minimum investment is USD100,000 with annual management charges of 1.50 per cent and a performance fee of 10 per cent. Redemptions are monthly at 90 days’ notice, with a 3 per cent exit penalty fee in the first year. BNP Paribas is the custodian while Custom House is the administrator.
Laven Partners is an investment management group offering consultancy services, including fund structuring, tax, legal and compliance, as well as distribution and advisory services to fund managers and investors.
