StormHarbour Partners said Thursday it accelerated the build out of its alternative asset management business with an agreement to acquire Fortrinn Partners, a U.K. alternative investment fund manager that specializes in volatility trading strategies.
The U.K. Financial Services Authority (FSA) must approve the transaction.
Fortrinn Partners, which will be renamed StormHarbour Alternative Investments (SHAI) once the acquisition closes, was founded by Keith DeCarlucci, CEO and former principal of MKM Longboat, and Antonis Giannopoulos, another former MKM Longboat principal. The two have working together for more than eight years.
StormHarbour said Fortrinn’s Convexity Fund has “consistently produced outstanding results” since 2006, when it was a subset of a larger fund. Since 2008, it has been offered as a standalone strategy.
Under the terms of the deal, DeCarlucci will continue to manage the Convexity Fund, and will join the executive committee of SHAI. Thierry Sciard, a managing principal of StormHarbour, will become chief executive of SHAI, and Nicolas Andine, a principal of StormHarbour, will become SHAI’s chief investment officer.
“Keith and his team have built over the years a highly efficient, reliable and scalable infrastructure," Sciard said in a press release. "We intend to leverage it to create a truly world class alternative asset management platform capable of supporting a collection of dedicated funds offering investors the highest of standards and best-in-class investment solutions.”