Scudder Weisel Capital Holdings, the joint venture between Zurich Scudder Investments of New York and merchant bank Thomas Weisel Partners Group of San Francisco, is being disbanded as the firms have chosen to pursue different distribution avenues, the firms announced late last month.
The joint companys first and only interval mutual fund created for wealthy investors will be liquidated later this month, after only three months in existence, according to the announcement.
Both parties desire to independently execute an alternative investments strategy through their respective distribution channels..., the joint statement issued by the companies said.
Zurich Scudder had recently decided to focus exclusively on product distribution through financial intermediaries, while Thomas Weisels business model continues to be direct distribution, the announcement said. Consequently, the joint venture no longer made sense.
Market conditions also influenced the decision to terminate the joint venture, according to the announcement.
The two companies partnered last fall to offer affluent investors direct access to alternative investments, initial public offerings and original research. Their first product was the Scudder Weisel Capital Entrepreneurs Fund, an interval fund that was first offered in January. A second interval fund, the Scudder Weisel Capital Growth Opportunity Fund, was registered this past January, but never introduced.