CAIS, Citi and Atlantic Fund Services have linked up to create ALTX Trust, a series trust for hedge fund managers seeking to launch ’40 Act mutual funds.

CAIS, Citi and Atlantic Fund Services have linked up to create ALTX Trust, a series trust for hedge fund managers seeking to launch ’40 Act mutual funds. 

“The collaboration of these firms brings together the capabilities and services required to successfully launch and distribute alternative mutual funds, alleviating hedge funds from a significant portion of the operational workflow,” CAIS said in a statement.

CAIS, which has a strong presence in the RIA and broker-dealer space, will list ALTX mutual funds on its platform and provide wholesale distribution services.

As with all funds listed on CAIS, Mercer will conduct strategy due diligence, monitoring and provide each new fund with a rating. Atlantic Fund Services, meanwhile, will provide fund administration, governance and compliance support, while Citi’s investor services division will be the global custodian for the trust, and will serve as the preferred prime broker to the mutual funds.

Citi recently estimated that assets held by US alternative retail mutual funds increased from $95 billion in 2008 to $250 billion in the last quarter of 2013.

“Series trusts have long served as a cost effective way for investment managers to participate in a registered fund without having to manage an SEC-registered legal entity themselves,” the statement said.