Germany-based asset manager First Private Investment Management has launched a new multi-boutique network in the country.
Named FP Investment Partners, the network aims to offer institutional investors with access to alternative asset classes. It will also promote the potential of emerging investment teams.
The network will deliver essential services in various areas, including sales, marketing, fund launch and regulation.
Further, investment partners can ink partnerships in research, data sourcing and product development areas.
Founding partner of the owner-managed holding company of FP Investment Partners Tobias Klein said: “The accelerating consolidation shifts the balance in favour of just a few large asset managers on the one hand.
“On the other hand, smaller, specialised players are in greater demand than ever before, but are often failing due to potential barriers to market entry or the necessary starting conditions.”
The boutique partners are said to be independent, specialised teams. Currently, the platform provides access to quant investing, infrastructure, as well as alternatives/hedge fund investments.
FP Investment Partners managing director Richard Zellmann said: “Our network partners, for their part, benefit from economies of scale as we take over marketing and sales services in a centralised manner, while founding teams can concentrate fully on their core competence.
“In future, it will be crucial for investors to be able to have access to successful niche players in order to survive in the highly competitive low interest rate environment.”
The most recent affiliated partner is hedge fund adviser Resonanz Capital, which brought €2.7bn of assets under management to the network.
Other companies include Re:Cap Global Investors and Luxembourg-based BKN Capital. Negotiations with other investment boutiques are ongoing.
In 2018, First Private selected Societe Generale Securities Services (SGSS) for front, middle and back-office services.