Proctor Buys 17% Stake In Alternative Asset Firm

Jun 28 2007 | 3:01pm ET

Proctor Investment Managers has bought a 17% stake in Conquest Capital Group, a New York City-based alternative asset management firm specializing in managed futures, long-volatility and beta replication strategies.

The partnership with Conquest, which has $380 million in assets under management, is the seventh for Proctor since its formation in January 2006.

“We have been fortunate to have attracted a number of high-caliber affiliates, whose AUM growth—from $4.7 billion to more than $8 billion in 2007 alone—is a testament to the strength of their strategies and performance,” said James Coley, Proctor’s chairman and CEO.

Under the agreement, Proctor has acquired a 17.5% equity interest in Conquest for an undisclosed sum. Proctor will become the company’s strategic sales and marketing partner, and Mona Aboelnaga Kanaan, Proctor’s president, will join Conquest’s management committee.

“In addition to its successful history of providing alpha generating strategies to clients, Conquest Capital has been a pioneer in the replication of hedge fund strategies and the development of alternative beta products,” said Kanaan.

Marc Malek, a managing partner at Conquest, noted that this year the firm has already raised $100 million, adding, “partnering with Proctor Investment Managers gives us a value advantage in the alternative investments market. Their strong distribution and sales capability will enable us to concentrate on what has made us successful to date: conducting research, creating new products and developing solutions to the alpha-beta problem.”

Coley added, “We believe that Conquest’s hedge fund beta products will continue to push the debate on beta versus alpha performance in the alternative industry. As of June, Conquest’s managed futures strategy has one of the longest industry track records and live validation of the alternative beta approach. We expect significant institutional demand as we begin to globally roll out this strategy -- along with their existing products -- with Conquest’s management team.”

Proctor will provide institutional and intermediary sales, marketing and client servicing to Conquest Capital Group.

Proctor, which was founded in 2006 with the backing of National Bank Financial of Canada, is a strategic private equity investor in asset management firms. Since inception, Proctor has partnered with a diverse group of firms that manage over $8 billion of client assets in traditional and alternative investment products.


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