New Merchant Bank Launches With Alternative Investment Restructuring Focus

Nick Parmee

16 December 2008

Grisons Peak and IGS Group have launched Alternative Investment Merchant Banking, a 50-50 joint venture between the two firms which will focus on M&A, restructuring, and debt and equity fund raising transactions exclusively for firms in the alternative assets industry. It will be based in London.

Grisons Peak focuses on deal structuring, execution and capital raising for firms in the financial services sector; IGS Group is a full-service provider of services to investors, fund managers, product structurers, distributors and intermediaries in all sectors of the alternative assets industry.

The new merchant bank is being launched at a time which it has identified as an unprecedented dislocation and resultant opportunity in the sector, with significant and sustained consolidation expected to take place throughout 2009 among hedge funds, fund of hedge funds, and private equity firms.

AIMB will initially focus on the UK and European markets. It will advise on both national and cross-border transactions, with the optimal deal involving single fund managers with assets under management of between $250 million to $750 million, or fund of hedge fund managers with assets under management of between $400 million and $1 billion and a minimum of five years track record for either.

Transactions undertaken will include mergers, acquisitions, divestitures, sales and purchase of minority and majority interests, and fund and management company restructuring. AIMB will be flexible on fee structure which includes the option for revenue and equity carry arrangements.

The business will be co-led by partner of Grisons Peak Paul Sullivan and John Godden, chief executive of IGS Group, capitalised by equal capital contributions by both parent firms. The firm expects to be fully operational by the end of January 2009 following the receipt of FSA regulatory approval. Grisons Peak and AIMB are currently FSA authorised and regulated.

Meanwhile, as reported elsewhere in WealthBriefing, Mr Godden has warned that almost a third of the world's hedge funds could disappear due to mergers or closures in what has been a poor year for the industry.