Monday, 1 September 2014
Last updated 3 days ago
Jul 3 2007 | 8:11am ET
London-based alternative asset manager Arch Investment Group is launching a hedge fund aimed at institutional investors looking to invest in “sustainable finance.”
The Arch Sustainable Finance Fund, which has an initial capacity of approximately US$150 million, is designed to capture value in investments whose value and profitability are underpinned by major long-term environmental, infrastructural and socio-economic trends.
The fund targets a net return of 15% to 20% net of fees per year, with a volatility target of 5% to 8% per year over the medium term.
The fund has the same core investments as the firm’s Sustainable Opportunities Fund, which was launched at the beginning of this year. That fund, which is currently closed to new investors, has returned over 11% since its inception five months ago. The new vehicle is designed to have a stronger focus on short-term, high yielding finance within the core areas of sustainable investment.
“Environmental stewardship is fast becoming a dominant global investment theme. Similarly, long-term socio-economic trends and infrastructural demands are influencing investment behavior within developed and developing nations,” says Stephen Decani, a partner at Arch. “As with all our funds, Sustainable Finance has low correlation to equities and bonds, and hence an intrinsic defense to market underperformance.”
The new offering charged a management fee of 1.5% and a performance fee of 20%. The minimum investment is US$150,000 or its equivalent. The fund is targeting institutional investors worldwide, and is ultimately expected to grow to over US$300 million.
Arch, which now has $450 million in assets under management, was founded in 2002 by Robin Farrell, the former head of alternative investments at Dresdner Kleinwort Wasserstein.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...