Wednesday, 28 January 2015
Last updated 25 min ago
Sep 30 2013 | 12:56pm ET
Northill Capital has made an offer to acquire the minority share of hedge fund financing firm Alpha Strategic that it does not already own.
Northill bought a 51% stake in Alpha Strategic in 2011. The firm, founded by former Bank of New York Mellon vice chairman Jon Little, is offering £0.25 per share for the rest of the company.
Alpha Strategic shares were trading at £0.19 before the bid was announced, rising to £0.235 in its wake. The company's share price has plummeted since it listed in 2005 at £1.20; Northill paid £0.53 per share in 2011.
Alpha Strategic's board said it is "considering the approach and will make a further announcement in due course."
Northill provides financing to hedge funds in exchange for a share of their revenue, and has done deals with such prominent firms as Winton Capital Management and IKOS Asset Management. The end of the latter agreement earlier this year sent the company to a £2.2 million loss, but Northill said it is in "advanced discussions" with four potential new partners.
Northill was founder by former Man Group executives Colin Barrow and Kit Malthouse. The latter is now deputy mayor of London.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…