NARA Capital is looking to give investors “new alternatives.” The Geneva, Switzerland-based firm, which opened its doors in October, launched an asset-based lending fund of hedge funds a month later with assets north of US$10 million. It was seeded by a group of European family offices.
“The idea is to focus on hedge fund strategies we consider to be alternatives of alternatives and asset-based strategies, in general, fit into that framework,” said co-founder Dominique Grandchamp.
The ABL offering is looking to invest in some 30 managers in North America, Europe, Asia and Australia. “In asset-finance strategies, you swap market risks for event risks,” Grandchamp said. “Therefore, the higher the number of managers we can have in the portfolio, the better.”
The fund posted an 85 basis point returns in November and 87 bps last month. It charges a 1.5% management fee and a 10% performance fee with a minimum investment requirement of US$100,000.
Going forward, NARA will launch funds of hedge funds in the trade finance, physical commodities trading, shipping and weather derivatives as well as insurance-linked and risk-transfer strategies.
Prior to founding NARA, Grandchamp was co-managing a large fund of hedge funds broadly invested in asset based lending strategies for Peak Partners (formerly Harcourt Partners), a Geneva-based fund of hedge funds, where his partner, Louis Zanolin served as a managing partner.