Seward & Kissel advises iM Global Partner on its investment in Dynamic Beta investments

September 17, 2018

Seward & Kissel advises iM Global Partner on its investment in Dynamic Beta investments

Seward & Kissel’s Business Transactions Group Focusing on the Middle Market

September 13, 2018 ― iM Global Partner announced its acquisition of a 45% interest in Dynamic Beta investments. Seward & Kissel was pleased to represent iM Global Partners in this investment management industry transaction.

Paris-based iM Global Partner is a leading investment and development platform dedicated to investing globally in asset management firms and providing them financial, distribution and operational support. New York-based Dynamic Beta is an innovator in the liquid alternatives investment space.

Seward & Kissel LLP (www.sewkis.com) is a leading New York law firm, originally established in 1890, offering legal advice emphasizing business, financial and commercial law and related litigation. The firm’s Business Transactions Group handles middle-market M&A, private equity, venture capital and joint venture transactions involving a wide variety of industries. The firm is ranked as Highly Regarded for Corporate/M&A by Chambers USA and is recommended by The Legal 500 in the middle-market M&A category, stating that Seward & Kissel “advises on market-leading transactions within the industries where the firm has an international reputation, namely investment management and shipping” and “also handles complex middle-market deals in the media industry and international sell-side M&A.“

The company’s press release describing this transaction is reproduced below the break for your information.

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iM Global Partner Signs Strategic Investment Partnership with Dynamic Beta investments, an Innovator in Liquid Alternative Asset Management

Paris and New York, September 13, 2018 – iM Global Partner, today announced the acquisition of a 45% interest in Dynamic Beta investments (previously branded Beachhead Capital). Dynamic Beta investments and iM Global Partner aim to become a major player in the liquid alternatives asset management space across the US and international markets by developing new investment solutions.

iM Global Partner is a leading investment and development platform focused on acquiring strategic investments in best-in-class traditional and alternative investment firms in the U.S., Europe and Asia.

Dynamic Beta investments is a New York-based innovator in the liquid alternatives space. Its investment strategies have outperformed relevant industry hedge fund indices and peers over the long term. Dynamic Beta investments is focused on delivering hedge fund performance with reasonable fees, daily liquidity and transparency through three main strategies:

Equity Hedge: leverages the talent and resources of some of the world’s most sophisticated equity long/short hedge funds to deliver equity-like returns with lower risk over time;
Managed Futures: a proven diversifier with almost no correlation to equities to target capital protection during periods of market stress; and
Multi-Asset/Stable Return: an outcome-oriented solution that can provide stable absolute returns through a complete market cycle.

Philippe Couvrecelle, chairman and CEO of iM Global Partner, said: “Dynamic Beta investments has developed a proven, clearly articulated, research-driven investment process to deliver outstanding risk/return profiles with daily liquidity and lower fees than traditional hedge funds. Our deep dive into the liquid alternatives space showed that Dynamic Beta investments’ expertise is unique. We look forward to helping to grow Dynamic Beta investments into a leading player in liquid alternative investment firm.”

Andrew Beer, managing partner of Dynamic Beta investments added: “Since 2007, we have demonstrated that we can deliver the diversification benefits of hedge funds without high fees, gating/suspension risk, and single manager risk. The next generation of liquid alternative products must be able to match or outperform actual hedge funds with lower fees and less risk than single manager products.”

Noted Mathias Mamou-Mani, managing partner of Dynamic Beta investments and head of risk management: “Extensive research on hedge funds proves that most or all pre-fee returns of hedge funds can be captured through dynamically-adjusted portfolios of market instruments. This validates our position that fee reduction can generate meaningful alpha for our clients. We are excited to work with iM Global Partner to introduce our investment solutions to a broader range of investors.”

Jeff Seeley, U.S. chief operating officer and head of distribution for iM Global Partner US added: “At the tail end of a long bull market, advisors and investors clearly appreciate the need to diversify into alternatives, yet too many liquid alternative products have underperformed or not met their stated investment objectives. Dynamic Beta investments’ product suite can provide a compelling solution for institutions, financial advisors, RIAs, high net worth clients and intermediary model portfolios – whether through ETFs, separately managed accounts or signal delivery to UMA platforms – to target capital protection and generate positive returns during bear markets.”

RBC Capital Markets served as financial advisor to Dynamic Beta investments in this transaction.

About iM Global Partner

iM Global Partner is an innovative global multi-boutique platform that partners with unique, independent asset management companies with the joint objective of accelerating their business growth, particularly toward worldwide and multichannel distribution. iM Global Partner currently has strategic minority investments in four asset managers – Polen Capital, Dolan McEniry Capital Management, Sirios Capital Management and Dynamic Beta investments – with combined assets under management of $30.4 billion as of July 2018. iM Global Partner represents assets under management of $7.6 billion in proportion to its participations. iM Global Partner’s strategic shareholders include Eurazeo, a leading European private equity investor, Amundi, the largest asset manager in Europe and Dassault/La Maison, a group of leading private shareholders.

About Dynamic Beta investments

Dynamic Beta investments (formerly branded Beachhead Capital Management) is a New York-based hedge fund advisory firm. Dynamic Beta investments’ main liquid alternative strategies – equity hedge, managed futures and multi-asset/stable return – are designed to outperform actual hedge fund indices by aiming “pre-fee” hedge funds performance through liquid futures and ETFs. Dynamic Beta investments also invests directly in hedge funds that employ illiquid strategies through its Beachhead Capital division. Dynamic Beta investments has published extensive research on hedge funds, liquid alternatives and smart beta (www.dynamicbeta.com).

Seward & Kissel advises iM Global Partner on its investment in Dynamic Beta investments

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