Russell in Germany/Austria venture funds tie-up
GERMANY/AUSTRIA – Frank Russell is joining forces with HVB International Markets, a branch of HypoVereinsbank - Germany’s second largest private commercial bank, to create a series of private equity fund of funds for institutional and private investors in Germany and Austria.
The first products to be offered in the programme will be European, global and US-only private equity fund of funds, with the primary focus on venture capital and buyout funds.
Axel Gruber from Hypo Vereinsbank and Hal Strong from Russell will be directors of the Munich-based company.
“ For our investors, the fund of funds structure will reduce the risk of the asset class,” said Axel Gruber, noting that the funds will hold stakes in hundreds of companies, and the funds will be broadly diversified in terms of sectors, stages, vintage years, and manager styles,” says Strong.
Private equity funds are well established in the United States, and a growing aspect of the European investment landscape. European private equity funds are estimated to have raised in excess of £48 billion in 2000.
The minimum investment for institutional investors in the new Russell/HVB fund of funds will be e5m.
Frédéric Jolly, MD for Europe, Middle East and Africa at Frank Russell, comments: “Germany and Austria are key markets in Russell’s ongoing European growth strategy and as such we’re very pleased to be announcing this series of products with HVB.”