Gencap Ventures has acquired the line of FactorShares exchange traded funds as a stepping stone to market ETF product and services for other would-be entrants into the fund space.
According to a change-in-control filing, Esposito Private Equity Group’s Gencap Ventures business is now the owner of Factor Advisor’s line of ETFs.
The FactorShares brand has also filed for three resource-related equity ETFs, including a mineral, resource exploration and extraction, and mining fund.
Gencap will seek to provide services similar to what Exchange Traded Concepts and AdvisorShares do for firms trying to bring ETFs to market.
“For any investment manager that wants to get into the space and doesn’t want to spend a few million bucks and wait three years to get involved, we’re going to build the necessary infrastructure and have it all available for them,” Sam Masucci, head of the new Gencap firm, said, reports Olly Ludwig for IndexUniverse. “We are building the most complete and comprehensive ETF product and services platform.”
The company will use the pre-existing regulatory permission acquired by FactorShares for both 1933 Act funds, which cover the futures-based ETFs, and passively managed 1940 Act funds to provide a launching platform for new fund ideas.
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Max Chen contributed to this article.