Two European investment firms are merging their fund of hedge fund businesses into one vehicle in an effort to better target countries where alternative products are rarely used.
Financial Times reported that Paris-based La Française will take a 40% stake in London-based Tages Capital under the deal. The combined entity, which includes $2 billion in assets from Tages and $1 billion from La Française, will consist of the Tages team taking on responsibility for making investment decisions.
Once merged, which is subject to regulatory approval, the new entity will be the largest fund of hedge funds firm in France.
Founded in 2011, Tages has additional offices in London and Milan. La Française manages $54.3 billion in its other divisions.