Hedge Fund to buy out Rival Fund

This buyout is RAB’s second, and largest acquisition since its founding in 2004, giving it increased exposure to the emerging markets. Last June, it bought Cross Asset Management, which had around $200m assets under management, for £9.5m.

Northwest was created in 1998 and manages a number of funds, some investing in Asian emerging markets, with one focused specifically on Japan.

The acquisition shows a great deal about the current trends in hedge fund growth. Since the volatile industry moved to the UK in the 1990s, it has rapidly developed into one of the most influential markets in Europe. London is estimated to handle about $200bn in funds under management.

RAB disclosed in July that it was seeking to add to its portfolio. It said: “We seek to advance the strategic development of RAB Capital, including the screening of several acquisition opportunities.”

RAB Capital’s principal activities are managing hedge funds and providing advisory and distribution services to the hedge fund management industry. Located in London, they are one of the largest companies on Aim, and are unlikely to tap the stock market for money to fund the deal. They have almost £100m worth of cash on its balance sheet and has amassed more than $4bn under management.