Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Collings sells Hexam stake to set up outsourcing business

Collings sells Hexam stake to set up outsourcing business

Bryan Collings, founding member of Hexam Capital , has sold his stake in the emerging markets boutique to fund an outsourcing business that will offer back office services to small firms and individuals.

Coppin Collings Limited was funded with the £391,273 paid to Collings when he sold his partner stake in the business last year. Collings is joined in the new venture by Mohamed Abdel-Hadi, who has left his role as an investment manager at APQ Capital to come on board as a consultant.

Collings (pictured) said creating the separate business was tax efficient, and avoided the 'reputational risk' of another investment manager having to use an established investment firm such as Hexam for operational support.

He sees a gap in the market for outsourcing firms catering to small investment managers that cannot afford to run operations in-house. Coppin Collings has a capacity of £10 billion and is in talks with several individuals about using its services, although it has no clients yet.

'When we set this [Hexam] up in 2006, the due diligence was a lot less stringent. It's almost impossible to set something up now with £20 million seed capital- it's a catch 22,' Collings said. Hexam spent £3.5 million in set up costs back in 2006.

'There things are expensive and we already have the capacity. Its a hugh challenge for a fund manager and we can offer that where they would not want to necessarily engage with Hexam because of reputational risk.'

Although Collings no longer owns any part of Hexam, he still manages the £6.2 million Hexam Global Emerging Markets fund, and also a larger offshore version.

Hexam Capital was originally founded as a 50-50 joint venture between Ignis and a group of ex-Barings managers, and has had a tough time in recent years. In the year to September 2013, its profits were 1.7 million, down from 2.7 million a year earlier and all of its funds are bottom quartile on a three year basis.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter