Capital Dynamics takes over US

The US arm of Swiss fund-of-funds Capital Dynamics has taken over the management of Silicon Valley-based HRJ Capital’s private equity and real estate funds-of-funds, taking over assets valued at more than US$2bn.

The move is part of the firm’s efforts to strengthen the firm’s US venture capital relationships, and as such will move its California office from San Francisco to Menlo Park. Ronnie Lott and Harris Barton, the founders of HRJ, and Howard Fields, the real estate chief, will all join Capital Dynamics Inc as managing directors.

Thomas Kubr, managing director and the CEO of Capital Dynamics Group, said: “We are excited to add the distinguished access to top-tier US venture capital that our new colleagues have built to Capital Dynamics’ current product suite. The transaction reflects our dedication to the US market and emphasizes our belief in the strategic importance of the West Coast specifically. We are at an interesting point in the financial markets’ cycle and look forward to making use of the opportunities together with our new and existing clients.”

Capital Dynamics has had a presence in California since March 2006, following the opening of its New York office in 2002.

HRJ Capital was founded in 1999, and specialises in private equity fund-of-funds. It owed US$68.9m to Silicon Valley Bank and the threat of closure hung over the firm until Capital Dynamics came along in April and agreed to take it over and pay of some of the debt.