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November 09, 2016  

London Shop Targeting LPs in US

Fledgling U.K. fund operator Quadra Capital is banking on U.S. investors to fuel its ambitious growth plan.

The firm’s debut offering, Quadra Global Equity Alpha, launched in August 2015 with about €10 million ($11 million). Subsequent contributions from European investors, combined with modest investment gains, have boosted the fund’s assets to €50 million. But managing partner Guillaume Touze, formerly a top asset-management executive at Barclays, has set a €1 billion fund-raising target for the global-equities vehicle.

That’s where the U.S. market comes in. The London firm has begun focusing its fund-raising efforts on investors in the States, particularly on the West Coast, and plans to organize a road show next year. It also may hire a U.S. placement agent. While the firm went with a UCITS structure for its European investors, Touze and his partners would set up an offshore version for U.S. backers, or offer managed accounts.

Through Sept. 30, the fund was showing a cumulative gain of 3.4%, versus a 6.7% decline for the HFRX L/S Equity Index and 3.1% drop for the HFRX Market Neutral Index. The Quadra vehicle, led by portfolio manager Paul-Georges Moucan, runs with net market exposure ranging from negative-20% to positive-60%.

Touze’s ambitions go well beyond the global-equity fund. In April, Quadra launched a global-macro vehicle with some €20 million — and a fund-raising target of about €500 million. Indeed, Touze has told his colleagues and investors that he sees the firm growing to €5 billion.

At Barclays, Touze oversaw a European asset-management unit with €20 billion of assets. Quadra’s management team also includes chief operating officer Chris Egbunike.

Moucan previously worked at Amundi, where he oversaw a global-equities portfolio of up to €2 billion as part of the asset-management giant’s team in London. His strategy at Amundi, which he continues to run at Quadra, generated an 11% annualized return from 2005 to 2013.