Tullet Prebon enters placement business

A year after launching a secondaries desk, the global inter-dealer broker will start fundraising for private equity, hedge fund and other alternative investment vehicles.

London-headquartered inter-dealer broker Tullet Prebon is pushing further into alternative asset classes with the launch of a fundraising division.

The company this week revealed plans to raise private equity, hedge funds and other alternative investment vehicles for “blue chip” clients. The private placement activities would fall under Tullet’s alternative investment group, which last year began brokering secondary sales of LP interests in private equity and other alternative investment funds. It has owned a property derivatives desk for five years.

Launching a fundraising division is a “good, natural fit”, given the global client roster the firm has built up since launching its secondary brokering activities, said Neil  Campbell, head of Tullet’s alternative investment desk.

Tullet has endeavoured to bring a “trading room” approach to the secondary business – refusing to engage in exclusives or subscribe to the notion that fund interests are difficult to value. “It’s liquidity-driven,” said Campbell. “Market is market.”

Campbell, who was previously a portfolio manager for fund of funds Axiom, has brought on former Axiom colleague Gahtan Vahidy to head Tullet’s fundraising origination efforts. Vahidy also has five years’ experience as a buy-side analyst for hedge funds, most recently at Erste Bank, according to a statement.

Campbell said Tullet would only take on mandates when it thinks it can add value by leveraging its global network of more than 1,500 traders, using as an example a Midwestern US private equity firm with little reach in Europe or Asia.

Tullet’s primary offices are in London, New Jersey, Hong Kong, Singapore and Tokyo. Via joint ventures and affiliates, it also has a presence in Bahrain, Bangkok, Calgary, Frankfurt, Jakarta, Luxembourg, Manila, Mumbai, Paris, Salt Lake City, Seoul, Shanghai, Sydney, Toronto, Warsaw and Zurich.