A group of former Man Group executives has launched a new hedge fund platform, Revere Capital Advisors, which aims to allow emerging hedge fund managers to focus on their core investment a
A group of former Man Group executives has launched a new hedge fund platform, Revere Capital Advisors, which aims to allow emerging hedge fund managers to focus on their core investment activity at the critical early stage in their development.
Revere will adopt a private equity type model, taking strategic equity stakes in partner managers and in return leading the sales, marketing and distribution of their funds. The firm also plans to offer corporate, administrative, compliance and IT services to help funds meet investors’ increased demand for solid infrastructure and risk management capabilities.
The firm has been founded by Daniel J. Barnett, the former chief financial officer of commodity trading firm E D and F Man and chief executive of Broadmark Asset Management, one of Revere’s first two manager partners, as well as other former senior Man Group executives including chief executive and chairman Harvey McGrath, chairman Michael Stone and head of global sugar trading and operations John Kinder.
According to Barnett and his colleagues, Revere was established to address the problems facing emerging hedge fund managers when trying to build their business quickly without losing focus on performance.
The firm seeks to address managers’ difficulty in gaining critical mass and raising assets under management in a timely manner by drawing on its founders’ extensive network of relationships from more than 35 years in the alternative investment business. It also aims to address the needs of investors in emerging hedge fund who place greater emphasis on infrastructure and risk management.
Revere has initially launched with dedicated teams in London, New York and San Francisco, but says that as further hedge fund managers are incorporated onto the platform the size of teams and number of locations are expected to grow.
‘This unprecedented time in financial markets has meant investors have an even greater need for emerging managers with the investment talent to manage and serve the growing needs of sophisticated and well diversified institutional investors,’ Barnett says.
‘It is now more important than ever that a durable business structure and a strong international distribution capability is in place. This is the established Revere model – one that identifies investment talent and through our due diligence process provides managers and investors alike with a high degree of confidence.’
Revere launches with two partner managers, San Francisco-based Broadmark, which is headed by Christopher Guptill and runs futures, value hedge and long/short full exposure strategies focused on the US market, and Dickson Capital Management in London, headed by Andrew Dickson who manages a fundamental long/short low-net exposure strategy to the European market.
The firm is seeking to build a portfolio of absolute return managers with non-competing investment styles, less than three years’ track record and current assets under management of less than USD50m but the ability to manage more than 10 times that amount.
Revere’s services include proactively raising assets for partner managers, distribution, marketing and sales support, and providing expert advice on all aspect of a hedge fund’s operations including management, administrative, compliance and infrastructure.
‘Revere is a true strategic and financial partner, providing emerging fund managers with a level of effective service and advice that will set them apart from their peers,’ Barnett adds. ‘Moreover, Revere’s model of minority ownership, with the provision of its stake secured only after achieving critical mass, allows both parties’ interests to be perfectly aligned, enhancing the growth potential of both firms.’
