Reuters- Alternative investments firm First Avenue Partners said on Monday it planned to raise up to $750 million (384 million pounds) for a portfolio that will invest with start-up hedge funds, as well as funds that have seen heavy outflows. <\/p>\n
The FAP Hedge Fund Opportunities fund, which has been launched with 100 million euros (74 million pounds) of capital from German firm Gothaer Insurance — a minority shareholder in First Avenue Partners — will be managed by Chief Investment Officer Oliver Bergmann.<\/p>\n
It will aim for returns of around 15-20 percent a year by investing around $25 million or more with start-up hedge funds, as well as funds that need an injection of assets to be able to attract other investors, and funds that have suffered investor redemptions but still look attractive.<\/p>\n
First Avenue founding partner Christian Benigni said the difficulty that many smaller hedge funds face in attracting investors, along with a growing number of funds seeing outflows, presented opportunities.<\/p>\n