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Veritable and Moelis AM launch Archean Capital Partners

Veritable and Moelis Asset Management have teamed up to launch Archean Capital Partners, which will provide new private equity portfolio managers with the initial capital, advice and infrastructure necessary to launch their own funds.

Veritable is a wealth management firm with over USD13 billion of assets under management. 
 
Moelis AM is the parent company for alternative asset management firms with an aggregate of over USD3billion in assets under management.
 
Through Archean Capital Partners, Veritable and Moelis AM will seek capital commitments for a series of single manager, special purpose vehicles (SPVs) that will invest in selected newly launched private funds. 
 
Archean will partner with managers across a broad range of strategies including buyout, turnaround/restructuring, growth, credit opportunities, infrastructure and real estate. As part of Archean's seed investment of capital in these newly launched funds, Archean will seek to provide its investors returns generated on both invested capital and revenue sharing from the new investment manager’s business.
 
Veritable and Moelis AM have already established the initial Archean SPV, a single manager SPV with USD100 million of capital committed by Veritable’s clients and individuals at Veritable, Moelis AM and Moelis & Company. 
 
The Archean SPV is in the process of investing with its first candidate in the private funds industry. Moelis & Company’s private funds advisory group has been retained by this manager to advise on further capital raising.
 
Michael Stolper (pictured), founder and CEO of Veritable, says: “Veritable made its first alternative strategy investment in the late 1980s. Since then we have invested several billion dollars of client capital around the world with a wide variety of unaffiliated private fund and hedge fund managers. In many instances, Veritable has provided fund managers with a significant portion of their initial investment capital having often cultivated relationships with them for years. We have developed a strong reputation among fund managers for providing long-term investment capital and the opportunity for managers to build their own track records. We are very pleased to be partnering with Moelis AM on this innovative partnership that, through Archean, will provide newly formed private markets managers with the critical mass and operating support to create institutional quality organisations.”
 
Christopher Ryan, managing director of Moelis AM, says: “The Archean platform is intended to allow individual managers the certainty of a large and stable source of initial capital for a rapid first close and the fundraising capabilities to secure additional capital commitments for their first funds. In partnership with Veritable, we believe there will be tremendous opportunities to grow this unique investment platform for the benefit of new managers and investors alike.”

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