New European equity fund

Asset manager Adelio supported by Bonhôte Fund Solutions’ growth capital programme for its new European equity fund

The pool of investors led by Bonhôte Fund Solutions will support Adelio Partners Limited (“Adelio”) in its accelerated capital raising. Adelio is a London-based asset manager formed in 2020 by a team of veteran managers who delivered alpha consistently at Alken over several years. Their first European equity fund was launched a few months ago. Capital raising of EUR 20 million has been finalised, and the final seeding of the fund is expected to amount to EUR 50 million.

Adelio was set up to redefine the business model and values of long-only boutique firms. It relies on an investment process that places risk controls and sustainability at the heart of everything it does. Led by Antoine Badel, CIO, Adelio’s management team consists of three portfolio manager/analysts, a trader and a COO, most of whom have spent more than a decade working together. Another stand-out feature in this team is that it comprises three engineers who subsequently became investment managers.

Using an unbiased style of management, the European fund focuses on 35-40 of the best pan-European cross-sector stocks, irrespective of market capitalisation, covering both growth and value issuers. The team’s objective is to generate a higher gross return than the Stoxx Europe 600 Index over the long term. Securities are selected opportunistically on the basis of risk/reward profiles. The process also relies on AQUA, an exclusive analytical platform which lies at the heart of decision-making, enabling the team to filter out behavioural biases, optimise portfolios and manage risks stringently.

“We’re looking forward to working with Adelio. The alpha consistently generated by the investment team between 2007 and 2019 while at Alken is impressive,” says Steve Métrallet, Head of Bonhôte Fund Solutions. “The investment process backed by a unique proprietary technology and the systematic consideration of ESG criteria in stock selection and portfolio construction convinced us to support this project.”

 “Being supported from the outset by a renowned Swiss financial institution guided by ESG considerations was a winning proposal, in our view,” comments Antoine Badel, Chief Investment Officer at Adelio. “We’re delighted to be partnering with Bonhôte Fund Solutions, which will enable us to achieve significant scale in a short space of time.”

The fund is currently registered in Luxembourg and reserved for institutional clients.

Backed by a group of investors from Western Switzerland, Bonhôte Fund Solutions was established in 2016 with a unique business model bringing together approximately 20 core institutional partners. It seeks to generate value by identifying investment opportunities and selecting niche or distinctive funds, prioritising those pursuing an active management approach.