Gemcorp Group, an emerging markets investment, commodities and energy group, has completed a management buyout from its seed investor.

The Gemcorp management team, led by founder and chief executive officer Atanas Bostandjiev, now owns 100% of the business. The terms of the transaction were not disclosed.

The buyout marks the latest step in Gemcorp’s expansion, it announced.

Since its inception as an emerging markets investment management firm in 2014, the group has grown organically, adding a physical commodity solutions business and an energy business.

It now employs more than 138 employees, operating across nine cities.

The Group’s three business lines comprise:

  • Gemcorp Capital, established in 2014 to provide capital to growth-focused corporates and sovereign entities in the emerging markets, with more than $6bn invested in self-originated credit and equity transactions since inception;
  • Gemcorp Commodities Trading, established in 2016 to offer funding and supply chain solutions for corporate and sovereign clients across the physical commodity markets;
  • Gemcorp Energy, established in 2019 and focused on delivering local solutions to the Africa’s energy needs, currently developing two modular refineries in Liberia and Angola, with proximity to major oil producing areas.

Bostandjiev said: “When we founded Gemcorp, we set out to build a disruptive integrated business to serve the growth capital needs of emerging markets corporates and sovereigns. There is no better way to demonstrate our conviction in this mission than to continue to invest in our business.”

Emerging market funds gained 1.9% last month, according to data group Eurekahedge, ahead of a 1.1% gain among hedge funds more broadly. That leaves them up 5.4% this year, still behind average hedge fund gains of nearly 8%.

He noted that several emerging markets have exceeded expectations in managing the COVID-19 pandemic and that they “are about to enter a new era of growth”.

“We believe that we have only scratched the surface of the capital and logistical solutions and developmental impact we can provide across Africa and the rest of the emerging markets,” Bostandjiev added.

HSBC AM combines alternatives capabilities

HSBC Asset Management is bringing together all of its existing alternatives capabilities under a single business unit, HSBC Alternatives, with a 150-strong team and combined assets under management and advice worth $53bn (€43.7bn).

The firm’s alternatives assets have doubled over the past four years and the creation of a single business unit is the next step in its strategy to reposition the business as a core solutions provider and specialist Asia, emerging markets and alternatives asset manager, it announced.

HSBC Alternatives will comprise of HSBC Alternatives Investments (HAIL), which includes the multi-manager hedge fund and private market teams, as well as the firm’s private debt, venture capital and direct real estate teams, with existing capabilities in the UK, France, Germany, Switzerland, Hong Kong and the US.

Joanna Munro, currently global CIO, will lead the new combined unit, reporting directly to Nicolas Moreau as a member of his management committee.

Munro was appointed global CIO in 2019 and has been with HSBC Asset Management since 2005, with responsibilities including CEO multi-manager and CEO Asia Pacific. She will continue to be based in London.

Under her leadership, the newly combined team will work closely with other parts of HSBC AM to deliver on the firm’s strategic enablers of client centricity, investment excellence and sustainable investing, it said.

Nicolas Moreau, CEO of HSBC AM, said: “With Joanna’s strong track record of building and transforming businesses, I am confident that we will take our alternatives business to the next level and accelerate this important growth opportunity.”

Xavier Baraton, currently global CIO for fixed income, private debt and alternatives, will succeed Munro as global CIO. Reporting to Moreau, he will join the management committee and continue to be based in Paris.

Baraton’s successor will be announced in due course.

Waystone creates global compliance offering

Global governance and third-party management company Waystone has today announced the creation of a new global compliance offering via the merging of four compliance service providers.

The new compliance offering, driven by client demand, takes Waystone deeper into the corporate compliance space to offer additional compliance services through a dedicated solution via its new global operation, Waystone Compliance Solutions.

The companies involved in the merger include Titan Regulation, along with Argus Global, CCL Compliance and ISAS – all experienced providers of regulatory compliance services, based in North America, Singapore, the Middle East, UK and Ireland, respectively.

The development of Waystone Compliance Solutions is a direct result of recent discussions between Waystone and its clients – which include Credit Suisse International, Investcorp-Tages, Crabel Capital Management, PanAgora Asset Management and Efficient Capital Management.

While Waystone has traditionally offered compliance services to fund managers at the fund level, it is the first time it will now offer services at corporate level, providing clients with comprehensive and much-needed solutions.

Waystone’s chief operating officer, Paul Cahill, said: “We have been challenged by our clients to solve these problems and the creation of Waystone Compliance Solutions mean we can continue to act on growth opportunities and are now in a strong position to provide clients with a truly global compliance solution that is unique in the industry.”

Waystone Compliance Solutions will be headed by Julie Dixon, originally founder and CEO of Titan Regulation, a provider of US compliance consulting services to complex financial institutions.

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