BNP Paribas Asset Management acquires fund of hedge funds business

BNP Paribas Asset Management is to acquire the Javelin fund of hedge funds business currently owned by ZCM Investor Capital, the US subsidiary of Swiss group Zurich Financial Services.

The Javelin fund has assets under management of $650 million and is a four year old, multi-strategy, multi-manager leveraged fund currently based in New York. BNP Paribas said the fund has a diversified client base in Europe and Asia.

The deal will involve the transfer of the fund to the management of BNP Paribas Fauchier Partners (BNP PFP), a subsidiary of the French bank specialising in funds of hedge funds. This will include the transfer of the funds office and four fund managers to London where BNP PFP is based. They will report to Bernard Dennery, managing director of BNP PFP, who said he expects the move to occur in mid June. This will ensure continuity of product management and complement the expertise of the existing team, the bank said.

On completion of the deal BNP PFP will have $1.9 billion of assets under management. BNP Paribas said it expects the deal to be concluded within about a month. It expects Javelin to be one of the main vehicles for the issuance of its structured products, it added.

Dennery said BNP PFP was attracted to Javelin because of investor interest in leveraged products, and because of the fund's strength in the Asian market.