Lombard Odier Investment Managers has acquired Henderson’s $1bn investment team Volantis, from its alternatives fund manager AlphaGen Capital.
The team, which manages UK equity long/short and long-only strategies, will join Lombard Odier IM’s hedge fund strategy platform, 1798, and will be based in London.
As part of the deal, Volantis will move with all their strategies and mandates, including the flagship fund Volantis and Best Ideas.
Lombard Odier IM will then become the manager of Volantis’ alternative funds and sub-manager of their long-only fund, with AlphaGen continuing to manage it on a delegated basis.
The team merge, which is expected in the first quarter of 2017, will be implemented under a “facilitation agreement” subject to fund board approvals, applicable regulatory consents and requisite investor votes, Lombard Odier IM says.
Lombard Odier IM head of 1798 hedge fund strategies Jean-Pascal Porcherot says the deal represents “an important milestone” in broadening the firm’s alternatives and uncorrelated solutions platform.
He says: “The team comes to us with a proven investment process, strong track record and extensive network which will underpin growth in existing client relationships and access to new clients. That Lombard Odier IM can attract a team of this calibre is a testament to the strength of our platform, our brand and our standing in alternatives.”
Explaining the motives of the deal, AlphaGen Capital chief executive Paul Graham says the firm’s business model will now focused on “more liquid and scalable strategies” and the deal with Lombard has been done “in the best interest of investors”.
He says: “The team will continue to manage their funds in the same manner and style that has brought them great success since inception over 10 years ago. We retain a good working relationship with the team, not least as they will continue to manage our long-only fund on a delegated basis, and wish them all the best.”
The Volantis team was part of Henderson’s Gartmore acquisition in 2011 and consists of 8 investment professionals.