Hi-tech asset manager sets up in Bermuda
Asset-management firm Alpha Innovations Ltd has picked Bermuda as the home for its headquarters.
Alpha wants to reduce risk and fees for investors and achieve operational efficiency through innovation and the use of blockchain technology.
Lawrence Newhook, Alpha’s chief executive officer, said: “The foundation of any institutional-quality investment-management business is strong regulatory oversight and for this reason, we chose Bermuda for our global headquarters.
“Bermuda has a sterling regulatory reputation in the asset-management industry and established laws to govern blockchain business.
“In short, Bermuda is where the funds industry and blockchain meet, and was therefore the perfect jurisdiction for Alpha Innovations.”
Last month, Laureate Digital Securities, which is Alpha’s sister company, announced that it was setting up its headquarters in Bermuda. Laureate is also leveraging blockchain, or distributed ledger technology, to “tokenise” investment funds to create greater liquidity and access for new investors, as well as bringing greater efficiency to fund administration.
Nicole Biernat, the chief operating officer of both Laureate and Alpha, will be based in Bermuda. Laureate’s offices will be at 41 Cedar Avenue, Hamilton. The two companies also share an office on Madison Avenue in New York.
Alpha’s leadership team has decades of experience in the asset-management industry with firms including Point72, Morgan Stanley, Goldman Sachs, CITIC and Balyasny.
“A key lesson from my 12 years at Point72 was never to compromise on the talent, which is one of the basic tenets on which we are building Alpha Innovations,” Mr Newhook, who is also CEO of Laureate, said.
“Our management team has worked in the financial markets through numerous up and down cycles and is also well versed in the potential of blockchain technology.
“We’ve built an asset-management firm that solves many of the legacy issues that make traditional asset management funds unappealing. We are ready to lead the industry into the future and provide compelling investment options that inspire institutional investors to put their capital to work.”
Alpha says its core directive is to identify unique sources of alpha, the relative outperformance of investment benchmarks, in investment strategies, isolate and extract that alpha, and deliver it to its investors through a framework which affords greater oversight and governance than what was traditionally available.
David Burt, the Premier, said: “Our government has pioneered legislation to put Bermuda at the forefront of the blockchain revolution, and Alpha Innovations is exactly the type of cutting-edge company we are looking to attract.
“Bermuda has long been a respected centre for funds, and now we can be a jurisdiction for new technologies allowing the trade of digitised assets. We welcome Alpha Innovations, and invite the evolving asset-management industry to choose Bermuda as a global platform for business.”