Merchant Capital Selects Kinetic Partners for Risk Management and Valuation

Merchant Capital’s UCITS III platform for hedge fund managers has appointed Kinetic Partners to manage risk management systems across the entire platform. Merchant Capital enables asset managers to quickly and efficiently launch UCITS compliant investment vehicles to the European market. Funds using the platform take approximately four to six weeks to launch, a process that often takes much longer when other methods are used. Merchant Capital also significantly reduces the high fees the process normally incurs and fulfils all necessary counterparty requirements.

Merchant will be using Kinetic Partners’ Risk and Valuation Services (RVS) to help fund managers establish robust risk management. RVS was set up in response to investor and regulatory pressure after the global financial crisis exposed significant weaknesses in the risk management practices of many funds. RVS will deliver risk services for Merchant’s UCITS client funds in one seamless process to help them implement robust and effective risk management systems.

The Kinetic Partners Risk and Valuation service line is led by Christian Szylar, who joined Kinetic from RBS (Luxembourg) where he was managing director of RBS Portfolio Risk Services. In its work with Merchant, Kinetic will focus on analysing market risk, counterparty risk, liquidity risk, risk reporting and ensure UCITS III compliance, as well as providing over-the-counter independent price verification.

George Cadbury, director of Merchant Capital, said: “We are delighted to announce our partnership with Kinetic Partners for risk monitoring services, being the most important component of a UCITS compliant structure. Kinetic Partners is a long-standing adviser to the asset management industry and is well versed in the risk management of UCITS compliant hedge funds. Engaging Kinetic Partners is in keeping with our ethos of working with high quality service providers and advisers.”

Szylar commented: “RVS is a one stop shop that allows funds to simply, effectively and accurately assess all the complex risks that funds face in one seamless process. We will provide Merchant Capital a level of expertise and technology that would be expensive and time consuming to develop and replicate inside an organisation. RVS represents a major step forward in risk monitoring and assessment.”