Incubator: New Alpha Advisers

Sat Apr 1, 2006


Nurturing new talent


In early 2003, ADI took a bold decision to build an incubator platform. Following the recruitment of Nicolas Gomart from Dexia Asset Management, to establish the incubation business, NewAlpha Advisers was launched in November 2003. By March 2004, it had established a holding company, NewAlpha Participations, with MATMUT and MAAF, two large French insurance companies. ADI, through NewAlpha Advisers, holds a majority stake of 60% while the two partners each have a 20% holding in NewAlpha Participations.

NewAlpha Participations either takes equity stakes in the incubated companies or a share of the revenues. Within this joint-venture arrangement, New Alpha negotiates deals and sets up and monitors the new managers, while MATMUT and MAAF provide seed money.

Historically, the incubator business has had a limited and chequered history in France. With the exception of SGAM Alternative Investments' new Starway platform, very few domestic hedge fund firms have taken this entrepreneurial route....

ISSN: 2151-1845 / CDC10004H

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