With you all the way: a US success story in Europe
In 2007 a small independent firm in the US launched a number of investment strategies which showed promising early performance. Interested in spreading their wings early, the firm’s leaders attended a Carne UCITS workshop in New York. As a result they chose Carne to help them launch in Europe. So began a relationship that continues to this day.
In 2011, the easiest route to market for a UCITS of our client’s size was to be a self-managed fund. We advised the firm on every aspect of the launch, including identifying an administrator, depositary and other key service providers, a challenge for many firms new to launching a fund in Europe. Carne provided two Irish resident directors (and still does). The fund didn’t initially get traction in terms of sales, despite the firm’s strong performance in the US. We introduced our client to a third-party marketing company that we felt would make a perfect cultural fit. From there, assets under management grew very quickly.
Going into 2017, with the advent of CP86, and given the increasing scale of their business, we recommended that our client transition the fund to a third-party management company arrangement. The firm conducted an open RFP process, which we entered along with a number of other providers. “Carne was the clear winner, the shining example of what people should be,” said its president. “They’re forward looking, and they were ahead of the curve.” Once appointed, we then advised on sourcing the best partners to service the fund in its new structure.
From its launch to the end of 2021, the fund has grown to $3bn in AUM. Likewise, from its inception to the end of 2021, the firm’s global AUM has risen from $30m of seed capital to $20bn. This kind of partnership is important to us. A partnership with Carne is not about size, it’s about the relationship.
“We’ve built a foundation of trust. There is good communication. Their knowledge is second to none. They never exert excess pressure, never overreach, always just true partners with good intent, which is incredibly important to our firm.”