Fund.com moves into hedge funds with Weston acquisition

Date: Thursday, April 1, 2010
Author: Hedge Funds Review

Financial services company Fund.com has acquired hedge fund seeding and distribution business Weston Capital Management.

The deal follows the recent formation of a strategic alliance between Weston Capital and alternative investments specialist Harcourt designed to identify and seed managers.

Weston Capital has over $1 billion in assets under management and offices in Florida, London and New York.

As well as its seeding business it originates and markets funds of hedge funds and single manager hedge funds.

The seeding platform was launched in 2004 and has provided capital for 13 emerging managers.

Weston intends to raise $250 million for its third incubation fund, Partners III, which will seed both hedge funds and actively managed exchange traded funds (ETFs), with Harcourt providing investment infrastructure and risk management.

Under the terms of the Fund.com acquisition, Weston Capital founder and CEO Albert Hallac will retain his role, while Fund.com chairman Joseph Bianco becomes chair of Weston Capital.

The deal will also enable Weston to work alongside Fund.com's majority-owned subsidiary Advisor Shares, which is a platform for managers wanting to offer their strategy in an actively managed ETF.

Fund.com also provides financial services education and information to investors and businesses on the wider investment market, including mutual funds and other pooled investment vehicles.