Alma Capital Investment Management is to acquire DWS’s Hedge Fund UCITS business, which provides investors with access to liquid alternative investment strategies in regulated UCITS funds through the DB Platinum fund range.
The DWS Hedge Fund UCITS business selects third party hedge fund managers to build regulated UCITS funds which it distributes to an institutional client base. The platform has EUR2 billion in AuM (as of 31 March 2019) across six hedge fund UCITS using a broad range of strategies including alternative credit, event driven, managed futures and global macro. Investors are spread across the UK, Switzerland, Germany, Spain, France, Italy, Asia and the Middle East. In addition to the single manager strategies, the team has significant capabilities in developing and managing multi-manager hedge fund UCITS vehicles partnering with key asset allocators.
The DWS Hedge Fund UCITS business is complementary to the long only and long/short range of UCITS strategies currently managed by Alma Capital Investment Management. The combined business will create a diverse range of single manager UCITS funds in long only and alternative strategies, each managed by specialist investment managers. Subject to regulatory approval from the CSSF, the combined business is expected to be effective in the second half of 2019.
DWS’s Alternatives platform overall has EUR 85 billion in AuM (as of 31 March 2019). This sale forms part of its strategy to provide scale, efficiency and focus.
In conjunction with the acquisition, Alma Capital Investment Management is announcing a change in its ownership structure with the addition of EnTrust Global as a 25 per cent minority shareholder. EnTrust Global is a global alternative asset manager with approximately USD19 billion in assets which offers investment solutions across the entire alternative spectrum, from core hedge fund investments, to opportunistic hedge fund co-investments and private markets focused solutions.
EnTrust Global capitalises on its deep network of long-term hedge fund partners and core hedge fund portfolio management capabilities to develop innovative solutions to meet the evolving needs of investors within the alternative space. EnTrust Global is 65 per cent owned by Legg Mason and 35 per cent by Gregg Hymowitz, Chairman and CEO.
Henri Vernhes (pictured), Founder and CEO of Alma Capital, says: “Since Alma Capital’s inception we have been privileged to work with Entrust Global and a range of talented managers. This acquisition represents an important step ahead for us. We look forward to serving our investors with a broader range of excellent funds from the DWS UCITS platform and to developing our business further with the continued support of our historic partner, EnTrust Global.”
Gregg S Hymowitz, Chairman and CEO of EnTrust Global, says: “Alternative UCITS investment solutions have become an essential part of European, Asian and Latin American investors’ overall asset allocation and as a result it was important for us to significantly expand our existing footprint within this investment universe. Doing so alongside our historical partners at Alma Capital was a natural extension. We look forward to our continuous partnership within the liquid alternative space.”
Pierre Cherki, Head of Alternatives at DWS, says: “We are committed to providing scale, efficiency and focus across our Alternatives platform. This transaction is an example of DWS’s commitment to moving this strategy forward, and we are confident that Alma Capital, with the backing of EnTrust Global, is a strong fit for the Hedge Fund UCITS platform.”
Karan Sarda, Head of Hedge Fund UCITS at DWS, says: “We look forward to working with Alma Capital and EnTrust Global to integrate and further scale our hedge fund UCITS business.”
