Replacing a manager under unusual circumstances

Bluecrest Allblue is a London-listed investment trust, set up as a feeder fund to a well-known multi-strategy hedge fund.

Our client approached us when the fund it had been investing into took the decision to return all external investment capital. Many of our client’s investors were keen for our client to continue to hold their capital and invest it in an alternative multi-strategy hedge fund. As well as providing advice on short-listed funds, once our client had made a decision, due diligence on the fund and its manager were required.

After winning the mandate, we took time to understand the specific requirements of our client and its investors, making sure to take into account the unusual background to the situation. We next assisted with advice on the selection of the short-listed funds and, finally undertook thorough operational and investment due diligence on the preferred fund.