Fortis Investment Management and Cadogan Management have entered into an agreement to combine their respective fund of hedge funds activities in a new stand-alone asset management company.
The new business will trade under the name Cadogan, with Fortis Investments as the majority shareholder, holding 70%.
The new business will have combined assets under management of $3.7 billion. These assets will be managed on behalf of a diverse, international client base across North America, Europe and Asia by a 42-person team based at the company’s New York headquarters and satellite office in London, UK.
Cadogan will focus on building out its existing product range for continued international distribution in North America, Europe and Asia, with the goal of being a leading provider of investment solutions in this asset class.
We see very strong global investor demand for fund of hedge funds products across our client base going forward, said Richard Wohanka, global CEO of Fortis Investments. Through the Cadogan team, we have strengthened our capability in alternatives and have broadened our product offering with a range of institutional quality funds. It gives us real critical mass in an asset class which is increasingly in demand by institutional investors.
The transaction is subject to standard regulatory approvals and closing conditions, but is expected to close within the next three months. It will have no impact on Fortis’ net profit per share, the company said.