Bermuda-based Equinoxe Alternative Investment Services, a newly formed premium boutique fund administrator, yesterday announced that a wholly-owned subsidiary of XL Capital Ltd. has made a significant minority investment in Equinoxe.

This is one of a number of strategic investments that XL has made in alternative asset management businesses over the past eight years.

The minority interest in Equinoxe expands the programme beyond asset managers into specialist service providers to the alternative asset management industry.

"We believe a strategic relationship with XL Capital gives Equinoxe the credibility, critical mass and resources to be a major player in the institutionalisation of the hedge fund administration market from launch," saidStephen Castree, Equinoxe chief executive officer.

Sarah Street, chief investment officer of XL Capital Ltd, said: "We are very pleased to have formed a strategic relationship with Equinoxe. As institutional investors increase their investments in alternative strategies, the need for highly professional, institutional quality fund administration services goes up.

"We are excited about what Equinoxe will be able to offer to its clients to meet that need."

Equinoxe is a fund administrator founded in 2007 by experienced hedge fund administration professionals.

Headquartered in Bermuda and with offices in Dublin, the US and Singapore scheduled to open in 2008 and 2009, Equinoxe is a full-service alternative investment fund administration company.