Three Asset Managers Team Up To Seed Emerging Hedge Funds

Date: Monday, August 16, 2010
Author: Albourne Village

Three asset management firms have joined forces to launch a hedge fund seeding business. Atlantic Asset Management, Montage Asset Management and Palmer Square Capital Management announced today that they have formed a strategic joint venture to provide capital and take stakes in emerging hedge fund managers.

The new fund will primarily target talented emerging hedge fund managers with existing track records or experienced investment professionals looking to launch new funds. A large institutional fund and ultra high net worth family have made investments in the new vehicle, which held its first close last month.

“We are delighted to form this joint venture with Atlantic and Montage. Due to the dislocation that occurred in 2008 and the increased regulation on Wall Street, we continue to see many talented investment managers that have departed investment banks and hedge funds trying to attract their initial large investor," said Chris Long, managing director of Palmer Square. "This is a great opportunity for us to not only apply our fund of fund management and risk control oversight capabilities, but also leverage our network and expertise in evaluating and investing in hedge funds.”

Gary Henson, president and chief investment officer of Montage added, “With this partnership, we are able to take advantage of this unique opportunity by not only providing the large block of investment capital, but also helping these talented managers achieve their capital raising targets through a concerted marketing effort to both the institutional and high net worth distribution channels.” Atlantic is an asset management and investment advisory firm, which together with its independently managed affiliated companies manages over $6 billion in a variety of fixed income, asset allocation and specialized investment strategies.

Montage is an SEC-registered investment adviser focused solely on asset management. The firm manages $7 billion in assets.

Palmer Square Capital Management provides investment advisory services, proprietary funds, and customized allocations focused specifically on alternative investments such as hedge funds and private equity funds.