Deimos Asset Hedge Fund Secures Investment from Ontario Teachers’ Pension PlanDeimos Asset Management, a new hedge fund led by a group that includes a former Co-CEO of RBC Capital Markets, has attracted investment from Ontario Teachers’ Pension Plan, one of Canada’s biggest pension funds.
Ontario Teachers’ Pension Plan, which oversees 140.8 billion Canadian dollars in assets ($112.3 billion), will invest an undisclosed amount in Deimos’s multistrategy hedge fund as an anchor investor, Deimos said Tuesday.
The investment is significant given the increasing difficulty hedge funds face raising new money amid a stricter regulatory environment.
“The requirements for passing operational due diligence keep getting stricter and stricter,” Mark Standish, former co-chief executive of RBC Capital Markets, said in a telephone interview. “That translates into more costs because of the more infrastructure needed for small and midsized managers,” he said.
At the same time, large institutional investors are more demanding of managers to produce outperformance against prevailing market conditions, he added.
Deimos, based in Purchase, N.Y., was created in February after a management buyout group that included Mr. Standish acquired Guggenheim Partners’ multistrategy hedge fund. His partners included Loren Katzovitz and Patrick Hughes, previously managing partners of the Guggenheim Global Trading alternative investment management business.Source: Wall Street Journal