La Française has entered into a strategic partnership agreement with alternatives multi-manager specialist TAGES Capital to merge their fund of hedge funds business.
As a result, a joint-venture will be created with US$3 billion in assets under management to better target countries where such products remain relatively unused.
Under the deal, La Française will buy a 40% stake in Tages Capital and handover the management of its existing range of funds of hedge funds and Ucits funds with approximately US$1 billion of AUM to its new partner.
Also as part of the deal, La Française des Placements CEO Pascale Auclair and other La Française executives will be appointed to the management committee of Tages Capital.
Additionally, two La Française fund managers will join the investment team of TAGES Capital in London to help oversee the delegated strategies.
It is reported that the expanded team will be responsible for managing the existing La Française fund of hedge funds product range and ensure the continuity of services for existing French investors.
La Française will be the exclusive distributor of La Française and Tages alternative multi-manager funds in France and will collaborate on international development opportunities outside of France.
As of 31 December 2013, Tages Capital had approximately US$2 billion of assets under management and advisory.