Aslan House Capital, a London-based event driven equity and credit-focused hedge fund, has grown its assets under management to USD190 million following a strategic investment from asset management seeder Investcorp-Tages.
The firm, which invests across a range of hard event-driven equity and credit catalyst situations predominantly in Europe, has also broadened its investor base with additional commitments from several global institutions.
Launched in November 2019 by Luke Lynch, former deputy chief investment officer and managing partner at Oceanwood Capital, Aslan House’s strategy aims to generate alpha using a differentiated, uncorrelated and scalable investment approach.
Specifically, the fund trades three strategies – spanning M&A arbitrage, credit catalyst, and special situations – in a single portfolio. It invests across the capital structure, with a focus on short duration, arbitraging the life cycle of global transactions.
The fund allocates dynamically across equity and credit, and invests both long and short in M&A trades, which is complemented by its credit catalyst focus, which alleviates any reliance on M&A volumes, Aslan House said.
A European event driven investment specialist of more than 20 years, Lynch – who also spent time at Tudor Capital – welcomed the Investcorp-Tages partnership, adding Aslan House is now “well positioned” for future growth.
“Our strategy is highly differentiated and has proved very successful,” he said. “It has low beta and low correlation to equity and credit markets arising from a focus on announced events and short duration opportunities, while the flexibility to pivot between equity and credit contributes to alpha throughout the cycle.”
The Investcorp-Tages multi-manager joint venture was launched in May last year by Investcorp and Tages Capital, with a view to building a global absolute return platform with more than USD6 billion in revenue generating assets, including customised portfolios, seeding and other investment products.
Mark de Klerk, head of seeding at Investcorp-Tages, said Aslan House’s strategy is “compelling” in the current environment, pointing to the team’s record in generating alpha across different market conditions.
“We have been thrilled to partner with Luke and his extremely experienced team at Aslan House. They have just the kind of pedigree in terms of depth of experience and expertise that investors are looking for, and have rightly focused on building a best-in-class operational infrastructure,” de Klerk said.