Deimos Asset Management has launched its new hedge fund management business, which was formed through a recent management buyout of Guggenheim Global Trading‘s platform. Ontario Teachers’ Pension Plan (OTTP) is an anchor investor in Deimos’ multi-strategy product, while Ares Management has made a strategic investment in the firm. Based in Purchase, New York, Deimos launched its operations with nine investment strategies focused initially on the United States and Europe. It is co-led by Mark Standish, a former executive at the Royal Bank of Canada and co-CEO of RBC Capital Markets.
Deimos Asset Management Launches Hedge Fund Management Business with Strategic Investment from Ares Management
March 03, 2015
PURCHASE, N.Y.–(BUSINESS WIRE)–Deimos Asset Management LLC (“Deimos”), a multi-strategy hedge fund manager, announced today the recent launch of operations of its new hedge fund management business. Ares Management, L.P. (NYSE: ARES), a leading global alternative asset manager, has made a strategic investment in the company. Deimos was formed through a management buyout of Guggenheim Global Trading, LLC, the former multi-manager, multi-strategy hedge fund platform of Guggenheim Partners. Ontario Teachers’ Pension Plan (“Teachers’”) is an anchor investor in Deimos’ multi-strategy product through a managed account platform.
“We could not be more pleased to be working with Ares and to have Ontario Teachers’ as an anchor investor”
Deimos is led by Patrick Hughes and Loren Katzovitz, former co-heads of Guggenheim Global Trading, and Mark Standish, a former Group Executive of Royal Bank of Canada and Co-CEO of RBC Capital Markets, as Managing Partners. Deimos is focused on the development of a suite of alternative asset management products, which is expected to include a multi-strategy hedge fund, along with a wide variety of individual hedge fund strategies. Deimos launched its operations with nine investment strategies focusing initially on the U.S. and Europe with plans to expand into additional markets over time.
“Having known the partners of Deimos professionally for many years, we are excited to work with this team to enter the large and rapidly growing hedge fund asset class, which represents 30% to 40% of all alternative investments today,” said Michael Arougheti, Co-Founder and President of Ares. “We believe we can create value with this strategic partnership by cross selling its hedge fund advisory services to our global investor base. This is a natural extension of our firm’s continuing diversification across alternative asset classes, which we believe enhances our value proposition to our investors.”
“We could not be more pleased to be working with Ares and to have Ontario Teachers’ as an anchor investor,” said Loren Katzovitz, one of Deimos’ Managing Partners. “Ares possesses a world-class distribution and marketing team which will be invaluable to us as we expand our hedge fund offerings. We look forward to building this business and executing on what we see as a very large opportunity within the hedge fund space.”
Deimos’ business plan provides meaningful advantages in light of changing conditions in the hedge fund industry. With its institutional-quality infrastructure and ability to pool resources for multiple managers, Deimos provides institutional-grade operational, compliance and technology resources to mitigate the significant challenges that new and smaller funds face, including increasingly challenging regulatory requirements. In addition, the Deimos platform allows investors to streamline the expense and time cost of due diligence by allowing investors the flexibility to access multiple high-quality investment teams through a single relationship.
The three Managing Partners of Deimos have extensive experience in the investment industry and have worked together in prior organizations. Loren Katzovitz and Patrick Hughes were Managing Partners in Guggenheim Partners, where they built Guggenheim Advisors, the firm’s managed account platform which was later sold to the Bank of Ireland. Mr. Katzovitz and Mr. Hughes more recently built Guggenheim Global Trading. Mark Standish, a former Group Executive at Royal Bank of Canada and Co-CEO of RBC Capital Markets and RBC Investor and Treasury Services, oversaw a wide range of businesses at RBC, including the proprietary trading business. Mr. Katzovitz and Mr. Standish previously worked together, beginning in the mid-1980s at Bankers Trust Company in London, with Mr. Hughes joining them in the early 1990s, and at RBC, where Mr. Katzovitz and Mr. Standish co-headed the global equity derivatives and proprietary trading business from 1995 until 2002. In addition, several members of senior management of Ares were also colleagues of Mr. Standish at RBC.
About Deimos Asset Management
Deimos Asset Management LLC is a multi-manager global hedge fund management company located in Purchase, New York and registered under the Investment Advisers Act of 1940. Deimos currently includes seven portfolio management groups investing under a variety of fundamental and quantitative strategies. Deimos was organized by the management of Guggenheim Global Trading, LLC to acquire the business of that company from its parent, Guggenheim Partners. The acquisition was completed on January 31, 2015.
About Ares Management
Ares Management, L.P. (NYSE: ARES) is a leading global alternative investment manager with approximately $86 billion of assets under management and more than 15 offices in the United States, Europe and Asia as of December 31, 2014, pro forma for the acquisition of Energy Investors Funds on January 1, 2015. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its four distinct but complementary investment groups in Tradable Credit, Direct Lending, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.
With $140.8 billion in net assets as of December 31, 2013, Teachers’ is Canada’s largest single-profession pension plan. An independent organization, it invests the pension fund’s assets on behalf of 307,000 retired and working teachers.
Mickey Mandelbaum, (310) 785-0810
Jennifer Gill, (310) 695-1412
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