France's long only market has become attractive enough to recently attract NewAlpha, an incubator better known for its investments in hedge funds. Jonathan Boyd reports.
NewAlpha Asset Manageinent, the European incubator that is owned by La Française and OFI AM, has invested $45m (€42.2m) each into two long only managers, marking the addition of long only investments to what has historically been a business focused on investing in hedge funds.
NewAlpha has defined the money invested as 'acceleration capital'. The $90m invested cornes out of a total of $250m (€234.3m) raised from 12 institutional investors. The remaining $160m (€150m) is set to be committed to further long only managers, with expectations that investments will be made before the summer, according to Antoine Rolland, CEO/CIO and Philippe Paquet, managing partner.
The overall $250m (€234.3m) raised is being invested via the manager's Long Only Equity strategy, which is a sub-fund to its French Sicav Emergence.
The two managers into which the initial $90m ( €83.4m) has been invested are Focus Asset Managers and Financière Arbevel.