Monday, 2 March 2015
Last updated 32 min ago
Jan 3 2008 | 3:49pm ET
Trusco Capital Management, a subsidiary of SunTrust Banks, has signed a definitive agreement to acquire a minority equity interest in Alpha Equity Management, which manages a variety of equity hedge funds and 130/30 strategies.
No economic terms were disclosed.
Following the transaction, Alpha Equity will continue to operate as an independent alternative asset management boutique under the Alpha Equity name and maintain its offices in Hartford, Conn., and New York.
The addition of Alpha Equity will allow Trusco to participate in the tremendous growth that is anticipated for alternative investments, particularly in 130/30 strategies. Total assets in 130/30-type products is currently estimated at $100 billion, and some sources estimate that over the next five years, demand in both the institutional and retail marketplaces could drive that number to more than $1 trillion in assets.
"Our clients, who continue to seek new ways to diversify their portfolios, will have a keen interest in this addition given Alpha Equity's very impressive six-year performance record and its managers' expertise in running long/short portfolios," said David Eidson, CEO of Trusco Capital.
"We are delighted to have Trusco as our partner in our business, The 130/30 fund space is potentially a very large marketplace for us," said Alan Glatt, a partner at Alpha Equity. "To participate in the 130/30 space, you either build a track record or in our particular case we offered built-out infrastructure and attractive six-plus year track record in international equity, U.S. REITs, U.S. equities.”
Glatt added that the firm, which is currently managing three 130/30 products, plans to launch an international 130/30 real estate fund by the second quarter. The fund will invest in real estate investment trusts as well as other real estate-related securities.
Alpha Equity was founded by Kevin Means in 2000 and has over $200 million in assets under management.
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…