EUROPE - New fund of hedge fund management group SilverStreet Capital has launched with a mandate of over $500m (€365m).

The investment manager - which has received Financial Services Authority approval - has been awarded the mandate from an unnamed European institution.

SilverStreet Capital will focus its marketing on European institutions such as pension funds and life insurers. The company claims to be different from other investment
managers through its independent thinking and forward-looking process.

Gary Vaughan-Smith, partner at the investment manager, said: "Our aim is to build a world-class investment management firm delivering outstanding risk-adjusted returns to our clients. There is a healthy appetite for alternative investments from institutional investors in particular, and we see many years of continued inflows into alternatives from this source."

He also told IPE: "Over the past five years we've seen around 20-25% growth per annum in the hedge fund universe, amounting to a total of around $1.5-2trn in assets under management. Institutional allocations - with usually large amounts of money - started off in the US before they swept into continental Europe and now into the UK. I expect the industry to grow by 12-15% per annum, which means it will roughly double over 5-8 years, with most institutions looking for a return of 3-5% above Libor."

SilverStreet Capital is a partnership set up by Vaughan-Smith and Alex Da Costa, both previously key players in the development of the alternatives business at ABN Amro Asset Management. The team is expected to grow to around eight to 10 people over 12 months.