New distribution firm to launch funds

Stuart Alexander, the former managing director at Close Brothers, has set up a third-party distribution firm with plans to launch its own funds later in the year.

Gemini Investment Management was set up at the beginning of this year to allow fund management firms to widen their distribution to British investors.

Alexander says: “I came across a number of fund management businesses that have good quality products but little ability to get to the market. Therefore, I set up Gemini with a two-pronged approach. Firstly to distribute on a third-party basis and, secondly, later in the year we will apply to the Financial Services Authority (FSA) to launch a Gemini Oeic.”

He adds that he has recruited fund managers to run the product, which will invest in a mixture of equities and alternative investments.

Gemini distributes the Sapphire Global fund on behalf of HFX Capital Management. The closed-ended vehicle buys up illiquid assets, such as hedge fund shares, collateralised debt obligations, collateralised loan obligations, investment grade corporate bonds and structured products, at a discount from distressed sellers.

“We want to give UK investors a wider choice away from long-only products. This also gives them access to fund managers that would not traditionally be available to them,” says Alexander.

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