Silk Invest, a specialist asset management firm, has acquired Danfonds Frontier Fund, a Cayman Island-based hedge fund, in an all equity deal.

Following the transaction, Daniel Broby, chief executive officer of Danfonds, will become the chief investment officer of Silk Invest.

The new team will launch two Luxembourg UCITS funds, African Lions and Arab Falcons, in the first quarter of 2009.

The Silk Invest Frontier Fund SPC will be relaunched in the second quarter of 2009 after finalizing the new offering memorandum and the various counterparty agreements.

Danfonds Frontier Fund will be renamed Silk Invest Frontier Fund and
Danfonds Investment Management (Cayman) will be renamed Silk
Invest (Cayman).

Broby said that the deal “is perfectly timed from an investor perspective. There is now immense opportunity in frontier markets as a result of the dramatic declines caused by the credit crisis; to which these economies are partially immune.”