Altarius Asset Management, a Malta-based asset management company, has launched Paragon, a hedge fund platform aimed at small and medium-sized management companies.
Paragon, a hedge fund platform aimed at small and medium-sized management companies, has been set up by Altarius Asset Managemnet.
The platform, domiciled in Malta, currently has one hedge fund on it, running a foreign exchange strategy.
According to the president of Altarius Group, Pierre Maliczak, around €50 million to €75 million in assets under management should be added to the platform over the next three to four months.
Paragon will be aimed at small and mid-sized third-party managers. Maliczak said he thinks family offices and high net worth individuals are increasingly interested in investing in funds through onshore platforms and are expected to be the main investor groups targeting Paragon funds.
Strategies most likely to be added to the platform include equity long/short hedge fund managers, private equity and property.
Paragon is registered as a professional investment fund, a structure typical of Malta. A PIF is not required to appoint Malta Financial Services Authority-regulated investment managers, administrators, custodians, prime brokers or advisors.
The MFSA will approve service providers based and regulated in a recognised jurisdiction. This offers small and start-up funds more flexibility in choosing service providers.
According to Maliczak the structure of the platform means it will be flexible in terms of strategy, liquidity requirements, reporting and leverage.
Maliczak expects the platform to be of particular interest to small and mid-sized fund managers hoping to grow AUM and eventually attract larger, institutional investors.
By concentrating funds with low AUM on the platform, Mailczak said he believes larger service providers will be more likely to consider supporting the smaller funds that on their own may not be attractive clients.
Altarius Asset Management is the Malta branch of Altarius Group which has €500 million AUM.