Frankfurt-based First Private Investment Management is founding a multi-boutique network in Germany.
Called FP Investment Partners, it aims to provide institutional investors with access to alternative asset classes, as well as promote the potential of emerging investment teams.
Members of the network will receive sales, marketing, fund launch and regulation services, according to a press release from First Private.
Barriers to entry
Tobias Klein, founding partner of the owner-managed holding company of FP Investment Partners, commented: “The accelerating consolidation shifts the balance in favour of just a few large asset managers on one hand.
“On the other hands; smaller, specialised players are in greater demand than ever before, but are often failing due to potential barriers to market entry or the necessary starting conditions.”
He continued: “With our network concept, we are a pioneer on the German market. Unlike larger, existing platforms, FP Investment Partners is not a hierarchical organisation, but a network where partners cooperate strategically at eye level.
“Since we are aiming for long-term cooperation and are convinced of the strategic added value of our partners, we also intend to participate in the partners’ business with our holding company, in the best case also through minority stakes in the partner boutiques.”
Richard Zellmann, managing director of FP Investment Partners and partner in the holding company, said: “Our network partners, for their part, benefit from economies of scale as we take over marketing and sales services in a centralised manner, while founding teams can concentrate fully on their core competence.
“In future, it will be crucial for investors to be able to have access to successful niche players in order to survive in the highly competitive low interest rate environment.”
In the club
The latest firm to join is hedge fund adviser Resonanz Capital, which brought €2.7bn of asset under management to the network.
Other companies include Re:Cap Global Investors and Luxembourg-based BKN Capital.
Together, the firms are responsible for roughly €5bn in AUM.
Negotiations are ongoing with other investment boutiques.
