Challenger takes stake in boutique funds

Challenger Financial Services Group is to take equity stakes in a number of boutique fund managers.

The plan involves taking a 30 per cent holding in a new fixed interest boutique to be launched in late 2008, run by the former head of fixed interest for Credit Suisse Asset Management, Ben Alexander.

This new boutique will be initially focused on managing Australian fixed interest and inflation linked bond portfolios.

Challenger will also take a 27.5 per cent holding in an established Australian equities hedge fund boutique business, WaveStone Capital.

WaveStone was established in September 2006 by Ian Harding, Graeme Burke and Catherine Allfrey, who had previously worked together at Colonial First State.

Challenger will be providing seeding to WaveStone to establish a new offshore absolute return fund based in the Cayman Islands, according to a Challenger media release.

This new fund will add to WaveStone’s current product range and takes the business to over $100 million in contracted funds under management, it said.

Additionally, Challenger has entered into a strategic partnership with SkyBridge Capital, LLC, a New York-based group that provides strategic capital to new and early-stage hedge funds.

Under the partnership, Challenger will support SkyBridge in not only raising capital from the Australasian region but in sourcing talented hedge fund managers.