Pacific Alternative Asset Management Company (PAAMCO) has launched PAAMCO Launchpad, a co-investment platform for seeding and supporting emerging hedge funds. Employees Retirement System of Texas (ERS) is the inaugural PAAMCO Launchpad partner.
ERS and PAAMCO believe the PAAMCO Launchpad platform will prove to be a compelling solution to help burgeoning managers with high-growth potential establish institutional-calibre firms. The ERS/PAAMCO Launchpad partnership builds on the long experience that both ERS and PAAMCO have in hedge fund investing, particularly with early-stage managers.
By combining their vast resources, experience and investment capital, ERS and PAAMCO believe they can provide a meaningful opportunity to hedge fund managers that have the foundation to grow into successful and profitable businesses. This newly created partnership also allows ERS to expand on its USD1 billion emerging manager program with the goal of bringing such investments to nearly 10 per cent of its externally managed investment portfolio. PAAMCO Launchpad is planning USD3 billion in assets dedicated to supporting emerging managers.
Andrew Gitlin (pictured) serves as CEO of PAAMCO Launchpad. Gitlin has 30 years of experience building, launching and managing a variety of alternative investment opportunities, and was among the first to introduce a formal manager seeding program in 1992. Panayiotis Lambropoulos, a seasoned Portfolio Manager in the hedge fund industry and Portfolio Manager of ERS, is leading the ERS effort in this joint venture, with responsibility for identifying and reviewing potential investment opportunities. Jeff Willardson, Head of Portfolio Solutions for PAAMCO, will lead the manager due diligence for prospective PAAMCO Launchpad managers and provide access to the deep capabilities of PAAMCO on behalf of Launchpad investors.
“PAAMCO Launchpad is thrilled to enter the seeding business with a partner as important, experienced and serious about this opportunity as ERS,” says Gitlin. “We believe PAAMCO Launchpad offers an intriguing value proposition that can unlock the potentially superior performance and private equity-like benefits embedded in early-stage hedge fund investing. Additionally, the platform is designed to create a solid alignment of interests between our clients and PAAMCO Launchpad.”
Lambropoulos adds: “We believe this newly-created model has the potential to be an industry standard for identifying and investing in emerging hedge fund managers, and we are excited about this groundbreaking partnership with PAAMCO and PAAMCO Launchpad.”