Renowned European hedge fund investment managers La Française and Tages Capital are due to join forces and merge their fund of hedge fund sections for more expansive coverage of the continent.
La Française is known for having the second-largest hedge fund of France, whilst Tages Capital has a strong team headed by Panfilo Tarantelli, formerly of Citigroup’s European team for investment banking. La Française currently manages approximately $40 billion assets, with a focus on real estate and equity funds.
The companies will form a $3 billion fund of funds after La Française takes a 40% share of Tages Capital. The aim is to target areas of the continent th
at currently do not have strong competition from other hedge funds.
The Tages Capital team of hedge fund managers will take the reins for the new conglomerate, and the largest contribution of funds will also be contributed by Tages Capital. $2 billion will come from the Milan and London based fund, whilst $1 billion will come from La Française’s Paris headquarters.
Tages Capital’s fund of hedge funds style of investment has proved successful, despite other companies moving away from this method of investment in the past few years. The economic climate in 2011 did not deter Panfilo Tarantelli from founding the firm, and its union with La Française should prove even more fruitful for the company. Tages Capital’s distressed debt and corporate finance advisory businesses will remain separate after the deal is confirmed.
The move has yet to be completed, but the process is expected to wrap up shortly.
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