3 May 2011
Nexar Capital Group, a global alternative investment manager, has acquired Ermitage Limited, one of Europe’s oldest hedge fund operators, from Caledonia Investments plc for an undisclosed sum. The deal underscores the consolidation sweeping through the fund of funds sector and creates a combined group with assets under management of $3.7 billion.
Caledonia is thought to have offloaded the stake, which it acquired with Ermitage management in 2006 from South Africa's Liberty Group, to concentrate on larger investments. Following a difficult period for Ermitage and funds of funds generally in retaining client assets, the deal will allow the Jersey-based group to rebuild as part of a bigger organisation.
Founded in 1975, Ermitage has offered a diverse range of investment solutions, which include customized hedge fund portfolios, multi- and single manager hedge funds as well as wealth management services. Ermitage has also developed OPTICS, a highly advanced portfolio construction and risk management software tool.
Nexar specializes in engineering alpha to meet investors’ objectives through active portfolio management in a variety of solutions. It manages funds of hedge funds and volatility arbitrage funds, both also available in UCITS III formats, as well as custom portfolios and other alternative products.
Upon its formation in September 2009, Nexar established a strategic partnership with Aquiline Capital Partners, a New York-based private equity firm focused exclusively on financial services, in order to position Nexar to act as a consolidator in the fragmented fund of hedge funds industry. In September 2010, Nexar acquired Allianz Alternative Asset Management, a leading European fund of hedge funds.
In addition to Jersey, Ermitage has operations in London and New York. Since 2006, Ermitage has become increasingly focused on its investment solutions capability, providing a highly advanced customized portfolio service alongside a comprehensive range of intelligently designed multi- and single manager hedge funds.
Caledonia is thought to have offloaded the stake, which it acquired with Ermitage management in 2006 from South Africa's Liberty Group, to concentrate on larger investments. Following a difficult period for Ermitage and funds of funds generally in retaining client assets, the deal will allow the Jersey-based group to rebuild as part of a bigger organisation.
Founded in 1975, Ermitage has offered a diverse range of investment solutions, which include customized hedge fund portfolios, multi- and single manager hedge funds as well as wealth management services. Ermitage has also developed OPTICS, a highly advanced portfolio construction and risk management software tool.
“Ermitage’s world class capabilities in delivering customized portfolios and services to sophisticated investors complements Nexar’s proven investment and risk management processes,” said Eric Attias, founding partner and chief investment officer of Nexar. “Furthermore, Ermitage’s UK-based expertise and network will benefit Nexar's fund of hedge funds group located in New York and Paris.”
Nexar specializes in engineering alpha to meet investors’ objectives through active portfolio management in a variety of solutions. It manages funds of hedge funds and volatility arbitrage funds, both also available in UCITS III formats, as well as custom portfolios and other alternative products.
“We are excited to be joining Nexar’s accomplished team and share their vision for building a premier alternative investment manager focused on alpha generation, risk management, transparency and innovation together with a strong institutional infrastructure,” said Ian Cadby, CEO of Ermitage. “Over recent years, Ermitage has made significant advances as an innovative solutions provider, a specialist area we are now better placed to expand thanks to our combined resources and market reach.”
Upon its formation in September 2009, Nexar established a strategic partnership with Aquiline Capital Partners, a New York-based private equity firm focused exclusively on financial services, in order to position Nexar to act as a consolidator in the fragmented fund of hedge funds industry. In September 2010, Nexar acquired Allianz Alternative Asset Management, a leading European fund of hedge funds.
Nexar founding partner and CEO Arié Assayag added: “As Nexar continues to invest selectively in order to build a leading independent alternative investment platform, Ermitage represents a well regarded investment manager and a valuable addition. We are pleased to welcome Ermitage’s team to the Nexar Capital Group and we believe the synergies of Ermitage and Nexar will create a dynamic global group capable of meeting investors’ varied needs.”
In addition to Jersey, Ermitage has operations in London and New York. Since 2006, Ermitage has become increasingly focused on its investment solutions capability, providing a highly advanced customized portfolio service alongside a comprehensive range of intelligently designed multi- and single manager hedge funds.
