London Firm Seeks Acquisitions, Launches Fund
Alternative Investment News, September 13, 2004

U.K. firm Integrated Asset Management (IAM) is looking to acquire other funds of hedge funds. Separately, the firm’s fund of funds subsidiary, GAIM Advisors, is also this month launching its fourth fund of funds, which will be a global long/short vehicle.

The firm acquired Appleton International, which managed around $60 million, about a year ago for about £1.5 million. IAM now hopes to greatly expand through further acquisitions; the firm has assets of approximately $500 million, half of which is in funds of funds, with the rest in its institutional broker business. The firm’s infrastructure could easily manage $1 billion, said Emanuel Arbib, chief executive. It is seeking to acquire funds of funds with $100-300 million under management. IAM hopes to make at least one acquisition within the next six months. The firm is working with Kidron Corporate Advisors, a New York based investment banking boutique, he said. The fund of funds market is saturated at present and needs to consist of fewer, larger firms, Arbib argued.

The new global long/short fund of funds carries a 1.75% management fee coupled with a 10% performance fee. It has a €100,000 investment minimum. The firm’s existing multi-strategy, market neutral and European-biased funds of funds have a minimum of €10,000 but these are offshore funds, whereas the new fund is domiciled in Ireland. It contains around 25 managers.

Mark Segall, chairman and ceo of Kidron, was travelling and unavailable to comment.