Rothschild & Cie. is on the lookout for a U.S. fund of hedge funds as it seeks to double its assets under management in that area.
"If you look at the U.S. fund of hedge fund business, it's fairly concentrated," Rothschild asset management CEO Jean-Louis Laurens told Reuters. "You have a couple of very large players and you have a number of smaller players, some of them struggling to remain in the business and falling a little bit below the US$5 billion mark that institutions or consultants would be comfortable with."
At the moment, Rothschild's U.S. fund of funds presence falls into the second category, with a small New York-based operation. But the firm has hired Cambridge International Partners to source potential acquisition targets which could boost Rothschild's total fund of funds assets, currently between €5 billion and €6 billion, to about US$10 billion.
"Being more present in the U.S. market and also having access to the U.S. institutional client base makes sense for us," Laurens explained.