A new boutique liquid alternatives asset manager has launched today following a management buyout from investment manager Downing LLP.
The new business is called Capel Asset Management.
It said it aims to deliver defined outcome, multi-asset solutions harnessing modern strategies across derivatives, alternatives and traditional assets.
Downing’s liquid alternatives team has transfered to Capel at launch, as well as the two strategies it manages.
Capel’s core leadership team comprises CEO Russell Catley, CIO Paul Adams, head of multi-asset Jon Gumpel and non-exec chairman, Richard Watts.
Capel is targeting a range of clients including institutional investors, discretionary fund managers and Financial Planners by offering two differentiated investment solutions.
The MGTS Capel Active Defined Return Assets Fund (formerly the MGTS Downing Active Defined Return Assets Fund) combines systematic derivative strategies with active management to deliver more predictable and consistent returns across the economic cycle, the firm said.
Launched in February 2025 and managed by Paul Adams, the fund is an active strategy, investing in a diversified portfolio of gilts and global equity autocallables and aims to grow capital at a rate of eight to ten per cent over any six-year period, net of fees.
The MGTS Capel Diversified Opportunities Fund {formerly the MGTS Downing Diversified Opportunities Fund) is designed to be a central defensive portfolio holding and aims to deliver optimised risk-adjusted returns, low correlation to traditional equity and bond benchmarks, combined with low volatility.
Launched in 2022, it is run by Jon Gumpel who seeks to invest in resilient underpriced assets with different drivers to deliver compounding growth, yield and attractive defensive characteristics.
The two investment funds have combined AUM of more than £405m, with the Defined Return Assets Fund raising £280m since launch in February 2025.
Russell Catley said: “The launch of Capel marks a significant new chapter for the team as an independent owner-managed entity. In our new format, we are now fully scaled to bring the strength of our fund offering to the wider wealth and investment market in the UK and beyond.”
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