Cantor Fitzgerald Investment Advisors (CFIA) plans to assume the investment management responsibilities for the fund of hedge funds products of Coast Asset Management.
CFIA is currently performing investment management services pursuant to a sub-advisory arrangement with Coast Asset Management.
Upon completion of the process of transitioning client service and portfolio management responsibilities and customary closing conditions, including receipt of all necessary consents and approvals, CFIA will become investment advisor to the Coast Diversified Funds and other Coast multi-manager fund of hedge fund products.
Shawn P Matthews (pictured), chief executive officer of Cantor Fitzgerald, says: "We look forward to working with the clients of the Coast fund of funds. The CFIA team is committed to being a leading provider in the alternative asset management and advisory space and providing investors with a customised approach to meet their unique needs. Cantor's extensive capital markets experience, broad distribution capabilities and deep relationships in the institutional marketplace serve as a strong foundation for clients. In addition to providing unparalleled customer service, we are committed to providing clients with a customised approach to meet their needs."
Dave Smith, chief executive officer of Coast Asset Management, says: "We believe CFIA's experience of managing illiquid credit related portfolios in various stages of wind down makes them particularly well-suited to assume the investment management responsibilities for these fund of funds. CFIA's deep experience in the multi-manager space positions them well to identify the best possible options for ongoing recovery and liquidity for our investors. It was important to Coast to find a team that not only had significant experience in taking funds through final dissolution, but an organisation that shared our commitment to providing continuity and unparalleled service to our clients."
Kidron Corporate Advisors, a boutique investment bank, acted as financial adviser to Coast Asset Management in conjunction with this transaction.
Summit Partners, a growth equity firm, owns a minority stake in Coast Asset Management and will continue to work with and develop business opportunities for Cantor Fitzgerald in growing the CFIA business.