Equinox Fund Management, a Denver-based commodity pool operator, has announced the formation of Equinox Capital Markets, an affiliate created to provide institutional placement agent se
Equinox Fund Management, a Denver-based commodity pool operator, has announced the formation of Equinox Capital Markets, an affiliate created to provide institutional placement agent services to hedge funds and commodity trading advisers.
Equinox Capital Markets will take on capital raising mandates from managers across the spectrum of alternative investment strategies.
The principals of Equinox Capital Markets have experience of distributing alternative investment products to institutional investors in the US, Europe, Japan, and the Middle East.
The new affiliate provides a natural complement to the product development and retail investor orientation of the existing business. It also builds on the manager discovery and due diligence capabilities of the group.
Equinox Capital Markets is based in Princeton, New Jersey.
John Gallagher joins Equinox Capital Markets as a partner and president. He last worked for Weiss Multi-Strategy Advisers where he was instrumental in rebuilding their fund management business after a decade when that firm was focused primarily on proprietary investment and trading. He has previously worked in senior roles at Gartmore, Deutsche Bank and Bank of America developing hedge fund products and related distribution channels to private investors and institutions.
John Plimpton, one of the founders of EFM, will also assume a leading role in developing this business. He has been involved in the managed futures business for nearly 20 years beginning with a stint at Commodities Corporation. He has raised substantial institutional capital for Beacon Management and Willowbridge Associates prior to founding EFM in 2003.
As of mid-March 2009, EFM had over USD650m under management in its managed futures products. EFM raises capital through a network of broker-dealers and registered investment advisers.
Equinox Capital Markets intends to prioritize mandates with managers who are transparent, more liquid and open to managed accounts.
‘While we are a marketing organisation and a placement agent, we bring the critical eye and sensitivities of an investor to our manager selection process,’ Gallagher says. ‘We choose the managers we represent with a high level of the care and due diligence. At the end of the day, we can only be successful if we are seen by institutional investors as being a valued resource in the manager discovery and evaluation process.’
Bob Enck, the president and chief executive of EFM, adds: ‘This new initiative, Equinox Capital Markets, builds on our established strengths in distributing alternative investment products. It allows us to utilize the full range of alpha-oriented strategies, to leverage our expertise in manager evaluation, and to substantially increase our distribution capabilities. Even in the midst of the unprecedented difficulties of the global capital markets, investors in every category can still see evidence of the value proposition represented by hedge funds and CTAs. We aim to work with managers who demonstrate that value now and in the future.’
