EUROPE - German insurance giant Allianz has merged two hedge fund subsidiaries to create a new Paris-based provider following the departures of three founders of one of the units two weeks ago.

Allianz said AGF Alternative Asset Management (AAAM) was merged with Allianz Hedge Fund Partners (AHFP) on April 2 to create a new fund of hedge fund provider.

AAAM is the hedge fund unit of French insurer AGF, which belongs to the Allianz group.

AHFP, which has an office in New York, was founded and led by Madhav Misra, Philippe Collot and Johan Alström. All three AHFP executives quit their company last March 31 to, as Allianz put it, "follow entrepreneurial interests".

Jean-Francois Vert, who comes from AAAM, will act as chief executive and chief investment officer of the new entity. According to Allianz, the new entity has more than $10bn in assets invested in its fund of hedge funds.

"The creation of a single platform for fund of hedge fund assets supports Allianz's strategy to reduce complexity in its operations," the Munich-based insurer said. "Clients will benefit from the combination of the long-standing expertise and track record of AAAM in Europe and the US presence of AHFP."

The insurer added: "Allianz appreciates the contributions of Madhav, Philippe and Johan in building the AHFP team, investment process client base and franchise and ensuring a smooth transition."

Two years ago, AHFP said it had around €1.5bn in assets under management, adding that it aimed to raise that volume to €2.5bn "in the short term". The boutique was a specialist in long-short equity and event-driven approaches.

Allianz declined to provide a more current volume figure for AHFP.