Bank Of Ireland Private Banking Unveils Hedge Fund Certificates

by Carla Johnson, Investors Offshore.com, London

26 July 2001

Bank of Ireland Private Banking, which offers alternative investment strategies to its wealthy customers, yesterday unveiled Hedge Certs, described as 5-year certificates of deposit which represent investments into underlying funds of hedge funds. The capital value of the deposits is guaranteed and returns follow the performance of the hedge funds.

The Bank of Ireland has teamed up with Asset Alliance Corporation to offer the product. New York-based Asset Alliance Corporation is an investment management holding company founded in 1996 that acquires equity interests in a diversified group of alternative asset management firms and develops, markets and distributes alternative investment products. Asset Alliance’s primary growth strategy is to acquire equity interests in established mid-sized Alternative Managers with assets under management ranging from $50 million to $500 million.

Up to April 2001 Asset Alliance had acquired equity interests in eleven Alternative Managers, with aggregate assets under management of $2.6 billion. Asset Alliance’s strategic objective is to build a large and diversified family of Alternative Managers each possessing a high level of expertise in its chosen investment discipline. Among the firm's investments and alliances are Beacon Hill Asset Management, Bricoleur Capital Management, JMG Capital Management and Liberty Corner Asset Management. It also has a stake in London-based Wessex Asset Management and Hedge Fund Services, an offshore fund administrator located in the British Virgin Islands.

Asset Alliance Advisors, a wholly-owned subsidiary of Asset Alliance Corporation, will act as the investment adviser to the underlying fund of hedge funds. Asset Alliance International, a London-based subsidiary, was established to expand the firm's global presence through manager research, joint ventures and the development and distribution of products throughout Europe, Asia and the Middle East.

Bruce Lipnick, president of Asset Alliance Corporation, said: "This is continued evidence of the appropriate expansion of alternative assets into investment portfolios worldwide."

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