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Investcorp single manager hedge fund platform reaches USD2bn in assets

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Bahrain-based alternative investment manager Investcorp has announced that the managers in its single-manager platform, launched in 2005 to support emerging talent in the hedge fund indust

Bahrain-based alternative investment manager Investcorp has announced that the managers in its single-manager platform, launched in 2005 to support emerging talent in the hedge fund industry, have raised more than USD2bn in assets.

Investcorp provides between USD50m and USD100m in seed capital to platform managers along with support for marketing and ongoing risk monitoring to avoid style-drift and other operational concerns. There are currently more than 30 institutional investors in the platform, which comprises six managers with a range of investing strategies.

‘Reaching the USD2bn milestone is a testament to the quality of the managers who have partnered with us,’ says Deepak Gurnani, a managing director at Investcorp and co-head of hedge funds.

‘We screen hundreds of candidates in order to select only the most experienced managers for each investment strategy in the platform. We attribute much of the success of the platform to our careful manager selection process as well as to our continued focus on alpha generation.’

The six managers currently in the programme are Cura Capital Management, a fixed-income relative value manager based in New York headed by Tom Schnepp; Interlachen Capital Group, a multistrategy firm based in Minneapolis led by Andrew Fraley; Silverback Asset Management, a convertible arbitrage-focused manager based in Chapel Hill, North Carolina headed by Elliot Bossen; Stoneworks Asset Management, a global macro manager based in London headed by Max Trautman; Washington Corner Capital Management, a distressed and credit-based investment platform in Florham Park, New Jersey headed by Ed Banks; and WMG Asia, an Asian long/short equity many led by Lena Tan in Hong Kong.

‘Investors truly value the commitment of capital from our own balance sheet, which fully aligns our interests with theirs,’ says Ibrahim Gharghour, also a managing director and co-head of hedge funds. ‘They also have a high regard for the operational oversight we provide to mitigate some of the real and perceived risks of investing in an early-stage fund.’

The single manager platform, for which Hank Murphy is head of development, is part of Investcorp’s larger suite of hedge fund solutions, which includes fund of funds, customised portfolios and structured products.

‘We’ve tailored the program to the interests of sophisticated institutional investors that want to diversify their hedge fund holdings by including the industry’s rising stars in their portfolios,’ Gharghour says.

The hedge funds team of more than 100 professionals oversees total assets under management of some USD8bn, of which around USD2bn is proprietary capital. The firm has a 12-year-long track record of investing in hedge funds.

Investcorp, which was founded in 1982 and has offices in New York and London as well as Bahrain, is active in private equity, real estate, hedge funds, technology investments and Gulf growth, and currently has around USD15bn in assets under management.

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