The FINANCIAL -- Deutsche Asset & Wealth Management's (DeAWM) Aggregator Solutions fund has recently acquired a USD 85 million portfolio of illiquid hedge funds from a Swiss asset manager.
The fund closed in August 2013 with commitments from professional investors of USD 1 billion, according to Deutsche Bank AG.
The Aggregator Solutions fund has now either acquired or had bids accepted on positions with a net asset value of more than USD 400 million from professional investors since it launched in October 2012. The fund was set up to invest in illiquid or lower-liquidity hedge funds, particularly in situations where market conditions make it difficult for investors to redeem their holdings.
"This acquisition adds a diversified pool of hedge funds to Aggregator Solutions' portfolio. At the same time, it provides locked-up investors with liquidity," Magnus Lorrain-Smith, Head of Hedge Fund Secondaries at DeAWM, said.
"Many hedge fund investors have been struggling to find liquidity since the financial crisis. With DeAWM's deep knowledge of illiquid hedge fund strategies, we have a strong track record of creating bespoke solutions for professional investors who hold illiquid hedge fund shares and that want to sell. These solutions may help to optimize the seller's balance sheet, while also freeing them from the administrative complexity of dealing in the hedge fund secondary market," he added.
The Aggregator Solutions fund is a leading fund in the illiquid space in terms of ready-to-deploy capital. "Contrary to market expectations, the liquidity issues in the hedge fund sector have not been resolved. We continue to be able to source opportunities and provide liquidity for would-be sellers," Lorrain-Smith said.