Deimos enters hedge fund management space
04 March 2015 New York
Image: Shutterstock
Deimos Asset Management has launched a new hedge fund management business with strategic investment from Ares Management.
Multi-strategy hedge fund manager Deimos is focused on the development of a suite of alternative asset management products, which is expected to include a multi-strategy hedge fund as well as a variety of individual hedge fund strategies.
It launched its operation with nine investment strategies focusing on the US and Europe, and has plans to expand in to other markets over time.
The new business will offer high-quality infrastructure and the ability to pool resources for multiple managers. Operational, compliance and technology resources intend to mitigate the challenges faced by new and small funds, particularly around regulatory requirements.
It will also allow investors to minimise the expense and timeframe of due diligence, offering investors the flexibility to access multiple high-quality investment teams via one single relationship.
The global alternative asset manager Ares Management made a strategic investment in Deimos to aid the set-up of the hedge fund management business, and the Ontario Teachers鈥� Pension Plan is an anchor investor through a managed account platform.
Michael Arougheti, co-founder and president of Ares said: 鈥淗aving known the partners of Deimos professionally for many years, we are excited to work with this team to enter the large and rapidly growing hedge fund asset class, which represents 30% to 40% of all alternative investments today.鈥�
He added: 鈥淲e believe we can create value with this strategic partnership by cross selling its hedge fund advisory services to our global investor base. This is a natural extension of our firm鈥檚 continuing diversification across alternative asset classes, which we believe enhances our value proposition to our investors.鈥�
Deimos was originally formed through a management buy-out of Guggenheim Global Trading, the hedge fund platform of Guggenheim Partners.
It is headed up by Patrick Hughes and Loren Katzovitz, former co-heads of Guggenheim Global Trading, plus Mark Standish, who was formerly group executive of Royal Bank of Canada and co-CEO of RBC Capital Markets.
Katzovitz commented: 鈥淲e could not be more pleased to be working with Ares and to have Ontario Teachers鈥� as an anchor investor.鈥�
She added: 鈥淎res possesses a world-class distribution and marketing team which will be invaluable to us as we expand our hedge fund offerings.鈥�
鈥淲e look forward to building this business and executing on what we see as a very large opportunity within the hedge fund space.鈥�
Multi-strategy hedge fund manager Deimos is focused on the development of a suite of alternative asset management products, which is expected to include a multi-strategy hedge fund as well as a variety of individual hedge fund strategies.
It launched its operation with nine investment strategies focusing on the US and Europe, and has plans to expand in to other markets over time.
The new business will offer high-quality infrastructure and the ability to pool resources for multiple managers. Operational, compliance and technology resources intend to mitigate the challenges faced by new and small funds, particularly around regulatory requirements.
It will also allow investors to minimise the expense and timeframe of due diligence, offering investors the flexibility to access multiple high-quality investment teams via one single relationship.
The global alternative asset manager Ares Management made a strategic investment in Deimos to aid the set-up of the hedge fund management business, and the Ontario Teachers鈥� Pension Plan is an anchor investor through a managed account platform.
Michael Arougheti, co-founder and president of Ares said: 鈥淗aving known the partners of Deimos professionally for many years, we are excited to work with this team to enter the large and rapidly growing hedge fund asset class, which represents 30% to 40% of all alternative investments today.鈥�
He added: 鈥淲e believe we can create value with this strategic partnership by cross selling its hedge fund advisory services to our global investor base. This is a natural extension of our firm鈥檚 continuing diversification across alternative asset classes, which we believe enhances our value proposition to our investors.鈥�
Deimos was originally formed through a management buy-out of Guggenheim Global Trading, the hedge fund platform of Guggenheim Partners.
It is headed up by Patrick Hughes and Loren Katzovitz, former co-heads of Guggenheim Global Trading, plus Mark Standish, who was formerly group executive of Royal Bank of Canada and co-CEO of RBC Capital Markets.
Katzovitz commented: 鈥淲e could not be more pleased to be working with Ares and to have Ontario Teachers鈥� as an anchor investor.鈥�
She added: 鈥淎res possesses a world-class distribution and marketing team which will be invaluable to us as we expand our hedge fund offerings.鈥�
鈥淲e look forward to building this business and executing on what we see as a very large opportunity within the hedge fund space.鈥�
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