Lombard Risk Management plc is pleased to announce the investment of GBP 1.1m, for a stake of 10.5% of the company, from Putnam Lovell NBF, through its parent National Bank Financial Inc. (NBF), a subsidiary of National Bank of Canada. This stake was acquired through the placing of new shares.
Putnam Lovell NBF will manage the investment on behalf of NBF. Mr Daniel H. Kochav, Managing Director of Alternative Investments at Putnam Lovell NBF, has been invited to join the board of Lombard Risk as a Non-Executive director.
This investment follows Lombard Riskâs successful IPO on the AIM section of the London Stock Exchange in September 2004 (ticker symbol: LRM). Lombard Risk is a leading provider of software, data and independent valuation services to banks and hedge funds, with a special focus on valuation and risk management of derivative portfolios. The funds will be used to drive sales and marketing and further the development of the Companyâs products and services.
"It is particularly pleasing to receive an investment of this size from such a well-regarded institution that is also very knowledgeable about the hedge fund space," said John Wisbey, Chairman, CEO and founder of Lombard Risk. "We warmly welcome Dan Kochav to our board as a non-executive director; his financial market background and involvement over the last few years in the alternative investment and hedge fund markets will complement the skills of our existing board members and particularly assist our business development in North America."
"As institutional investors boost their allocations to hedge funds, there is an increasing demand for outsourcing solutions including transparency and risk measurement, and for independent valuations of the investments made by hedge funds," said Daniel H. Kochav. "The experience Lombard Risk brings to this process, together with its existing high quality customer base, stands to make the company a clear leader in this area."