Principal Eyes Fund Of Funds After Hedge Fund Buys

Apr 10 2012 | 1:08pm ET

Principal Global Investors' expansion hasn't ended with its acquisition of majority stakes in hedge funds Finisterre Capital and Origin Asset Management. The asset management arm of insurance giant Principal Financial Group plans to add other asset classes to its stable—starting with a fund of hedge funds.

PGI CEO Jim McCaughan is focused on finding a fund of funds manager to buy, hoping to replicated the success of Man Group and Lyxor Asset Management's fund of funds platforms.

"I'd heard Jim was interested in a fund of funds business," an investment banker told Financial News. "They make up a sector that relies on institutional money and he has links with no end of potential clients. He is happy to buy into relatively small managers, in the belief that he can help them grow."

McCaughan himself told FN that PGI "are interested in funds of hedge funds, where we can be certain they add value in terms of selection and structure." PGI is also eyeing infrastructure managers, but with less hunger: "The area is quite complex," McCaughan said.

Last year, PGI bought controlling stakes in two London hedge funds, Origin and Finisterre, for a combined US$150 million. Parent PFG is expected to spend up to US$900 million on acquisitions this year.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR