NewAlpha Asset Management (NewAlpha), a Paris-based global emerging manager acceleration specialist, has reached a seeding agreement with Prime Capital AG (Prime Capital).
Founded in 2006, Prime Capital is an independent financial services provider and asset management firm focusing on institutional clients. The company specialises in Alternative Investments, in particular Absolute Return, Infrastructure and Private Debt. Prime Capital currently employs over 50 professionals, based in Frankfurt, London and Luxembourg and has around EUR5.4 billion in Assets under Management.
NewAlpha will invest a significant amount of capital in Prime Capital’s Gateway Target Beta UCITS Fund, via a dedicated fund, structured and managed on behalf of large European institutional investors that are committed to increasing their strategic allocation to innovative investment strategies. Post-investment, the fund will have close to EUR40 million in AuM, enabling it to reach an important threshold.
The investment objective of the Gateway Target Beta UCITS Fund is to provide consistent positive returns by pursuing an investment strategy, which seeks to provide returns similar to those of certain diversified hedge fund indices, which invest in or have exposure to global equity and credit markets.
Vincent Weber, who has more than a decade of experience in asset allocation and risk management models, advises the Gateway Target Beta Ucits Fund. Vincent joined Prime Capital in 2007 as portfolio manager and is now head of research.
Commenting on the strategic deal, Werner Goricki, CIO of Prime Capital, says: “I am glad that our R&D efforts to apply our investment expertise in a highly liquid format succeeded in the development of the Target Beta strategy. The Gateway Target Beta UCITS Fund is an innovative addition to our existing offering of classical hedge fund strategies and we view having on board an experienced investor like NewAlpha as an independent seal of approval regarding the thoroughness of our investment process and operations. Furthermore, the seed capital will accelerate the growth and increase the attractiveness of the fund.”
Antoine Rolland, CEO of NewAlpha, adds: “More and more investors are showing an appetite for UCITS funds that follow a quantitatively driven absolute return strategy. The Target Beta strategy offers many benefits, including diversification and the fund has performed well, even more so given recent market volatility. Prime Capital and NewAlpha share common values and both organizations have an entrepreneurial corporate culture. We are very enthusiastic about this new investment with Frankfurt-based Prime Capital.”
As Europe’s leading incubator, NewAlpha is continuously seeking talented investment managers that are in their early stage of development or are looking for strategic partnerships to accelerate their growth.