Close Brothers Group, the London-based merchant bank, plans to take full control of Fortune Asset Management, the funds of funds group it purchased in 2006 and which had, until now, been run as an independent entity. Fortune chief executive Simon Hopkins is taking his entire team with him to Close, where he will be responsible for building out the parent’s institutional asset management business. Hopkins said he expects the integration to be completed by March 1.
Fortune was already working to expand its multi-manager business and is preparing to establish its fund of funds business in Asia by acquiring another firm. Hopkins would not name the target firm but said the acquisition process is in advance stages. “Most funds of funds in Asia have capped out at $1 billion, and most are considerably less,” he said. Close Brothers Group is eyeing the planned acquisition as a way to gain an immediate foothold in Asia, from which to promote its global offerings. “Most [Asian institutional investors] are looking for global solutions, not just Asian ones,” said Hopkins.
The firm is on the lookout for a senior business development professional with experience of the Asian market, to lead its activities from Hong Kong. No candidates have been lined up. Hopkins also plans to beef up his satellite research office in New York, which is staffed by two analysts. He expects to add several more and will begin hiring over the next six months.
Fortune manages a range of funds of funds, offers investment advisory services to money managers and family offices, and has raised more than $4 billion in funding for early-stage hedge funds in Europe. Combining Fortune’s business with Close Brothers’ will create an $11 billion asset management business, of which funds of funds will make up about $3.5 billion.
—Robert Murray