Capital Z Partners Inc (CZI), New York-based global alternative asset management firm, is to create a new alternative asset management company with Zurich Financial Services Group (ZFS) of Switzerland. ZFS is expected to commit US$2bn to the new venture, Capital Z Investment Partners (CZIP), in a bid to rejuvenate its US$435bn asset management business.
CZI's two flagship funds are Capital Z Investments LP, a US$1.5bn alternative investment fund, and Capital Z Financial Services Fund II LP, a US$1.85bn private equity fund focused on the financial services industry. ZFS's capital commitment, which will equate to a significant ownership interest, will be allocated to the successor vehicles of these flagship funds.
Laurence Cheng, a partner of CZI, commented: 'Our strategic partnership with Zurich and its significant capital contribution will serve to strengthen Capital Z 's position as one of the leading alternative asset management firm. This new venture allies Capital Z with Zurich, one of the world's largest financial services providers, and firmly establishes Capital Z as a force in the alternative asset industry. Capital Z plans to benefit from the substantial resources and preeminent distribution networks of ZFS.'
He continued: 'Principally, we see the benefits from our alliance with ZFS as including: a powerful distribution network and multiple channels for alternative investment products; proprietary access to financial engineering and alternative investment product enhancement tools; access to new business opportunities for the Capital Z portfolio fund managers and the underlying portfolio companies; and a significant extension of Capital Z 's global network.'
Steven Gluckstern, a Wall Street venture capitalist
who has been appointed head of ZFS's global asset
management business, said of the deal: 'In my new
position at ZFS, I look forward to continuing to work
toward realising the vision that my partners and I
defined in 1998, namely to build a premier diversified
alternative asset management firm. One of my goals
will be to ensure that CZIP is able to unlock the
potential synergies with Zurich. This transaction
reflects Zurich's recognition of the significance
of the extraordinary growth of the alternative asset
industry and the heightened investor interest in alternative
products. Any forward-thinking traditional asset management
firm must have proprietary access to an alternative
asset manager for product and management expertise.
Alternative investment products complement the existing
product lines of ZFS' traditional asset management
business.'
CZIP will invest will invest in a broad range of private equity funds, hedge funds, structured products, direct investments and other alternative investment vehicles.
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