BNP Paribas Asset Management (BNP PAM) has signed an agreement with ZCM Investor Capital Inc. (ZCM), a US-based subsidiary of Zurich Financial Services, to acquire its Javelin Fund of Hedge Funds business. This business will be managed by BNP Paribas Fauchier Partners, BNP PAM's subsidiary specialised in funds of Hedge Funds.
The transaction will involve the transfer of the management of the Javelin fund, a USD 650 million in assets under management, multi-strategy, multi-manager, leveraged fund that has operated for almost four years. The Javelin Fund has a diversified client base in Europe and in Asia.
On completion, ZCM' fund management team, currently based in New York, will move to London where BNP Paribas Fauchier Partners is based. This will ensure continuity of product management and complement the expertise of the existing team.
The Javelin Fund will extend BNP Paribas Fauchier Partners' existing range of Fund of Hedge Funds products and is expected to be one of the main vehicles for the issuance of structured products by BNP Paribas Fauchier Partners.
This acquisition will significantly strengthen BNP Paribas Fauchier Partners' presence in the Fund of Hedge Funds market. Following the completion of this transaction, BNP Paribas Fauchier Partners will have USD 1.9 billion of assets under management.
BNP Paribas Asset Management, a wholly owned subsidiary of BNP Paribas, is an international investment manager with around EUR 168 billion in assets under management, in more than 20 countries. Its dedicated "Alternative & Structured Investments" unit accounts for over EUR 18 billion out of its total assets under management.
BNP Paribas Fauchier Partners, which commenced operations in February 2002, is owned by BNP Paribas Asset Management and by Fauchier Partners. Fauchier Partners has nine years' experience of constructing and monitoring portfolios of Hedge Funds.