The Emergence Europe fund will be dedicated to the acceleration of international equity funds run by boutique managers based in France and in the European Union.
Emergence, the fund dedicated to accelerating entrepreneurial management companies, announces that it has selected NewAlpha Asset Management as the investment manager of its future European sub-fund, Emergence Europe, which will be launched before the end of the year.
In response to the request for proposals issued by the SICAV Emergence in December, nine investment management firms had expressed interest. Four of them, with differentiated approaches to incubation and acceleration asset managers, submitted their applications on 22 January 2020. Following a structured and rigorous analysis process, Emergence's Board of Directors unanimously selected NewAlpha's application.
"The launch of this new Emergence Europe sub-fund is ambitious and the specifications for selecting the investment manager were demanding. While NewAlpha AM's experience working alongside Emergence since 2012 could be an asset, it was essential to demonstrate a good understanding and a proven ability to meet the expectations and objectives related to the European dimension of the Emergence model. We applaud the very high quality of NewAlpha AM's application, whose expertise was evident in all the applications received," said Sabine Castellan Poquet, Vice-President of Emergence since 2020 and Chief Investment Officer at MACIF.
According to the press release issued today by Emergence, institutional investors who are shareholders of the Emergence SICAV have noted that NewAlpha has the expertise and experience of a "pure player" in the field of incubation and acceleration of young entrepreneurial investment managers, the importance of human resources specifically dedicated to the activity and the quality of tools relevant to the business.
The presentation of an in-depth analysis of boutique managers operating in the European Union with an offer of funds on European equities, based on a proprietary database that is immediately operational, was also a determining factor in the choice made, according to the management of the SICAV.
An internal Selection Committee specially set up for the occasion studied and scored the candidates' files according to 7 pre-established criteria and interviewed representatives of each of the candidate management companies. The Committee's analyses and recommendations were forwarded to the Board of Directors for discussion and appointment of the investment manager.
The call for applications and the selection of the sub-manager are the first steps in the launch of the Emergence Europe Fund. In the coming weeks, the finalisation of the fund's offering memorandum and the adaptation of the sub-fund's governance to its European dimension will precede the fund raising. The first closing is expected at the end of October 2020 and a first investment should be made by early 2021.
"Our ambition for Emergence Europe is to raise €500 million by broadening our historic investor base to include new French investors and, for the first time, European players. In the current context, this approach of accelerating management companies by investing in equities makes more sense than ever for long-term investors, who are naturally counter-cyclical," stressed Laurent Deborde, Chairman of Emergence.
Emergence Europe is the first sub-fund of Emergence open to entrepreneurial investment managers based in the European Union and a pool of institutional investors from these countries. With this new sub-fund, Emergence's ambition is to position itself as the European leader in the incubation of boutique managers and thus contribute to the influence of the Paris financial centre as a hub for asset management in Europe.