London-based BlackSquare Capital, which manages a fund of funds comprised solely of Caxton Associates investments, is kicking off a German certificate in January. The firm rolled out its fund of funds earlier this year and now manages roughly USD25 million. The aim was to build a track record first before making a marketing push, said Christopher Peel, ceo. BlackSquare is looking to raise an additional EUR50 million from German investors during the first half of next year, he added.
Germany is a relatively new market for hedge funds and since Caxton's funds have been closed for a while, there are few investors in the country with exposure, said Peel. Due to the regulatory framework in the country it was easier to tap the market through a certificate. This is because German onshore investors would not have to pay capital gains taxes if they hold the note for at least one year, said Peel.
The certificate--which will be pegged to the euro share class of the BlackSquare Capital Access Fund and is structured by Barclays Capital--will be pitched to small institutions, family offices and wealth management shops catering to high-net-worth investors.
