The incubator and accelerator fund Emergence(1) has successfully closed a third funding round of €320 million for its second European equities sub-fund, bringing the total amount of capital raised from 16 French institutional investors and invested in the three sub-funds to close to €800 million.
"This fundraising is a real success: it represents a 60% increase compared to the previous sub-fund dedicated to equity strategies, and confirms the quality of the managers' selection and their respective successes. Thanks to its original national marketplace model reinforced by the extension of its club of LPs, Emergence opens new horizons to retain or attract France's asset management talents and expand its investments towards increasingly innovative fields, such Artificial Intelligence applied to portfolio management", says Alain Leclair, President of Emergence.
The management of this pool of capital is entrusted to some of the most promising entrepreneurial asset managers based in Paris, who are selected and analyzed by NewAlpha Asset Management, and then submitted for approval to the investment committees of the Emergence SICAV.
These entrepreneurial boutique managers can thus accelerate their growth, especially internationally: the managers of the two other sub-funds of Emergence have tripled their assets under management as a result of the SICAV's investments. Of the €7.4 billion managed at the end of April 2018, 55% originates from international investors, which underlines the cross-border reach of the “Emergence” label..
"The € 320 million in fund raising for this sub-fund will enable us to significantly increase the average unit amount of future investments and encourage the acceleration of high-potential managers, active in high conviction Large Caps, off the radar European Small and Mid-Caps or innovative quantitative techniques " concludes Antoine Rolland, CEO of NewAlpha Asset Management.
Through this new breakthrough, Emergence encourages institutional investors to "invest together" and gives the French asset management industry additional leverage to accelerate its development.
1 The sub-funds of Émergence SICAV cannot be marketed outside France and are closed to subscriptions