FiINLAND - A major player is set to hit the Nordic hedge fund market following a new merger deal.
3C Fund Management is set to combine its hedge fund operations with those of investment manager Mandatum - part of Finnish insurer, Sampo - to form a new company, 3C Asset Management (3C).
According to Juhani Elomaa, managing director of 3C, hedge fund investment among pension funds in the region is set to become a become a “big issue” in the near future as investors look to non-correlated assets in light of stock market volatility.
Elomaa added that Finnish pension fund portfolios, for example, could expect to see allocations to alternative strategies rise to 5% in the next few years, from the current average of around 1%. The majority of this money is likely to flow into hedge funds, he said.
The deal will result in a combined portfolio of EUR300mmaking the Helsinki-based firm the second largest Nordic hedge fund manager by assets under management. Swedish firm Brummer & Partners currently holds the top spot with approximately EUR2.1bn (SKr20bn) in asset under management.
Details of the transaction were not disclosed. But Sampo is set cut its 56% stake in the new company to 51% in order to recruit new executive partners; 3C holds on to a 44% share.
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