San Francisco-based Gerken Capital Associates is teaming up with BBVA Bancomer Gestion to launch the GCA Latam Fund, a multi-asset and multi-strategy offering, with $25 million in seed capital next month.
The fund will focus on investments in the Latin American markets, primarily Mexico, Brazil, Chile and Argentina. It will actively and dynamically manage assets across all asset classes utilizing a range of investment strategies. The new offering is managed by GCA with BBVA Bancomer, a subsidiary of Banco Bilboa Vizcaya Agentaria, acting as a local advisor.
Both parties have known each other for some time and spent close to two years negotiating the management relationship for the new offering, according to Lou Gerken, chairman and CEO. “We believe that our fund is positioned to be the 'institutional grade management team' of choice for Latam investors,” he said.
Gerken added that the firm plans to launch India, Greater Russia and Middle East and North Africa focused hedge funds in the near future
The fund charges 2% for management and 20% for performance, with a $1 million minimum investment requirement.
Gerken Associates was founded in 1989 and is currently manager and/or advisor to seven alternative asset funds with approximately $1.5 billion of assets under management.
Madrid, Spain-based Banco Bilboa manages 106 Latam mutual funds with AUM of US $17.3 billion and advises seven international funds with US $220 million in AUM. BBVA SA also recently partnered with Schroder Group’s New finance Capital to form hedge fund of funds Altitude Teide, a multi-strat vehicle domiciled in Spain.