HS Group Ltd (HSG) is to make its first investment into a new hedge fund set up by Kenneth Lee and Michael Yoshino, former China and Japan specialists at Soros Fund Management.
The duo will be joined by an experienced team, including a COO who previously managed one of Asia’s largest alternative asset management firms.
Pleiad Investment Advisors (Pleiad) plans to launch its new fund in the third quarter of 2014, with commitments in excess of USD150 million from Pleiad founding partners, HS Group and affiliates.
A majority of Pleiad’s initial capital will be provided by HSG’s Sponsor Fund, a private equity vehicle that partners with top-tier investment teams to establish institutional quality hedge funds in Asia. HSG aims to provide meaningful long-term capital, strategic guidance on industry best practices, and value-added relationships to Asia’s new generation of independent hedge fund leaders. HSG expects the diversification of its partnerships to broadly reflect Asia’s hedge fund industry potential over the next ten years.
Michael Garrow, Founder and CIO of HSG, says: “Pleiad represents the continuation of an investment process refined over a decade at some of the world’s largest alternative investment firms. The firm’s senior investment professionals spent the early part of their careers at TPG Capital focused on growth and buyout transactions in Asia. Today, their investment style combines deep private equity diligence on companies with macro discipline and top-down perspectives on long term sector and country trends. The all-weather strategy is run with moderate net exposure, and has proven to be repeatable and scalable on a universe of liquid Asian equities.”
Johannes Kaps, Founder and CEO of HSG, says: “We are firmly committed to building an institutional, best-in-class investment firm with experienced partners overseeing the day-to-day running of the business. Pleiad’s COO and CFO have a combined 37 years of industry experience, the majority of which was spent at Goldman Sachs in Asset Management and Prime Brokerage. The COO also spent a decade at one of Asia’s longest standing alternative investment firms, most recently as its COO.”
V-Nee Yeh (pictured), Chairman of HSG’s Advisory Board and Board member of the Columbia University Endowment, says: “Pleiad’s partners share deeply held beliefs about team culture, investment philosophy, as well as reputation and compliance. There is a concerted effort to build an enduring franchise with an uncompromising adherence to the highest ethical standards. The team’s unique culture and philosophy has been developed through lessons learned at some of the strongest pedigree investment firms in the world.”