Italian asset management group Azimut has launched a new private markets fund allowing professional investors to take stakes in alternative asset managers, Citywire can reveal.
The strategy aims to raise $500 million in total, including €150 million for a European vehicle registered in Luxembourg. Two other vehicles will be installed in the United States and the Cayman Islands.
The Azimut Global Private Markets Next Gen fund will be accessible to investors from a minimum investment of €125,000, said Giorgio Medda (pictured), group co-CEO and global head of asset management.
The fund will acquire minority stakes in private market strategy managers and their funds, accessing the underlying profitability of management fees as well as carried interest.
The strategy will seek to write tickets between €20m and €25m for each manager and there will be a leverage component, Medda said. He said they would aim to make between six and eight investments, which could reach 10, depending on the opportunities.
The launch of the fund comes just over two years after the company set up a US company called Azimut Alternative Capital Partners (AACP) to invest in managers specializing in private markets.
Led by Jeffry Brown, the AACP has signed several deals, including investments in HighPost Capital, led by David Moross and Mark Bezos; and credit manager Kennedy Lewis.
“What we have realized over the past two years where we have invested significant sums in acquiring minority stakes is that there is also a tremendous opportunity for individual investors, based on the possibility of ‘amplify the underlying results of these private market strategies, with the complement that comes from the profitability of the general partners who manage these funds,’ Medda said.
The fund has been structured to also give investors the option of exposure to a single manager within the vehicle if they wish, such as a co-investor.
Azimut’s private markets division currently has approximately €4.2 billion in assets. It launched its first private market fund in 2019, which was a buyout strategy focused on Italian SMEs, with a minimum investment threshold of €5,000.
Medda added: “Over the past five years, we have worked to ensure that our clients are exposed to or assigned to private markets strategies based in Europe. With this initiative, we bring the potential for diversification across US and other global private market strategies.
“We want to ensure clients have the most effective diversification and the ability to generate returns that are uncorrelated to underlying market conditions.”