Challenger buys stake in Kapstream
Kumar Palghat
Challenger has taken a 25 per cent stake in Kapstream Capital, a global fixed interest boutique scheduled for launch next year by former Pimco co-head Kumar Palghat.
In addition to its cornerstone investment, Challenger will provide Kapstream with administration services and have sole global distribution rights.
The boutique will primarily focus on securing institutional mandates, but will also offer a fund for the platform and retail market.
It will operate “outside the space traditionally dominated by fixed interest and hedge funds by providing target returns for clients more tailored to their future liability stream”, Palghat said.
“A key differentiator will be our ability to tailor to individual client needs and deliver stable income and alpha generation.”
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