NorthPoint, the prime services business of ConvergEx, has launched a new division dedicated to the formation, performance and management of alternative mutual funds. The new Alternative Mutual Fund Services division will work with traditional mutual funds and hedge funds that are interested in launching alternative mutual funds. The offering will combine ConvergEx's investment technologies and investment services to enable customers to raise assets, optimize performance and manage funds in compliance with 1940 act regulations.
Jay Jacobs has been hired to lead this new division. An industry veteran with almost 30 years of experience, Jacobs was most recently a partner at Merlin Securities.
"Today, alternative mutual funds represent less than 1 percent of the $12 trillion mutual fund market. Since we began offering select services to launch alternative mutual funds back in May, we have seen a significant uptick in demand. We believe that trend will continue and our expectation is that alternative mutual funds will reach over 5 percent of the market within the next 10 years," said Doug Nelson, chief executive officer of ConvergEx's NorthPoint. "We are thrilled that Jay has come on board to run this new business. He has first-hand experience in every aspect of managing and operating alternative mutual funds, from creating a fund to fund distribution – all of which can be tremendously helpful in helping funds raise assets. No one in the industry is better suited for the job and our customers will benefit greatly from his years of experience."
