Fund of funds pioneers launch new firm

Anders Astrom and Tomas Otterud, the founders of Aberdeen Property Investors' real estate fund of funds business (API IIM) have joined forces to create Custor Capital, an independent investment firm focused on global customised real estate solutions for institutional investors.

Astrom and Otterud, who most recently headed the global real estate fund investment group at Credit Suisse, are setting up the new firm together with Bo Ljunglof, former fund director of API IIM's Asian activities and CIO of the first Swedish AP pension fund, as well as Edward Jogi, former vice president and portfolio manager at Credit Suisse and head of investment analysis at API IIM. The four partners expect to expand the team in the near future both through recruitment and strategic alliances.

'Custor Capital will leverage its global network of relationships with managers, advisors and institutional investors to identify and structure investment opportunities through a solution-based approach in close collaboration with the client,' said Otterud.

Custor Capital will develop real estate investment programmes for a range of institutional investors and other appropriate investor groups. The investment programmes will comprise customized separate accounts, club structures and traditional fund of funds products.

Ljunglof added: 'High volatility in the equity markets has led many institutions to consider decreasing their exposure to equities, and long-term fear of inflation makes the bond market less attractive. In this context real estate with its characteristics of long durations and inflation protection is considered very appealing in today's environment.'