UK investment bank and fund manager Shore Capital is set to launch a $500 million European opportunities fund in partnership with Lehman Brothers, which has pre-committed $50 million and is taking a 10 per cent stake in the management company. Shore Capital aims to invest in a variety of asset classes such as secured loans, real estate and asset-backed cash-generative businesses. Initial investments are expected to focus on Central and Eastern European markets. Ralf Nocker, formerly managing director and co-head of principal investments at Bear Stearns, has been hired to manage the fund. "The launch of the European Opportunities Fund ... puts us in a great position to grow our alternative assets and principal finance business at a time of a changing market place and significant new opportunities," said executive chairman Howard Shore in a statement. London-listed Shore Capital specialises in fund management, principal finance and equity capital market activities. Based in London, Liverpool and Berlin, it manages specialist funds, with a particular focus on alternative asset classes. Shore Capital reported a 79 per cent rise in funds under management to $2.9 billion in the 12 months to end-August, up from $1.62 billion in 2006.