Our approach

Investment objective

“Tetragon’s investment objective is to generate distributable income and capital appreciation.”

Yuko Thomas
Head of Investor Relations

Investment strategy

To achieve this objective, Tetragon’s investment strategy is to invest primarily in alternative assets and strategies, both by partnering with asset managers who offer differentiated expertise and by making direct, idiosyncratic investments.

In addition to investing with external managers, Tetragon invests with and in the managers on its diversified asset management platform, Tetragon Partners. Through the platform, Tetragon invests in a range of underlying strategies – often alongside other investors – and, when appropriate, also aims to realise the value of its ownership stakes, or GP stakes, in these businesses.

The ways we invest 

Our investment strategy leads us to invest in three primary ways:

Funds managed by Tetragon Partners

We invest as an LP in a range of specialised strategies managed by Tetragon Partners asset managers, with a view to obtaining diversified returns on favourable terms. In so doing, Tetragon aims to not only produce asset-level returns, but also to enhance these returns with fee income from external investors through its GP ownership stakes in these businesses. Tetragon is also the only, or the lead, LP investor in a number of these strategies.

Externally-managed funds 

We invest with third-party managers – without taking a GP ownership stake – to access asset classes and investment strategies beyond those on the Tetragon Partners platform, using our experience to select managers and invest on favourable terms.

One of Tetragon’s largest investments is Tetragon Partners, which manages, oversees and supervises our majority and minority GP stakes in asset management companies. In addition to investing as an LP in some of the strategies managed by Tetragon Partners asset managers, Tetragon aims to realise, where appropriate, the value of its GP stakes in these businesses, whether through strategic transactions or dispositions.

Through Tetragon Partners, Tetragon buys, launches and builds asset management businesses. Depending on the circumstances, Tetragon can provide working capital, co-investment capital and/or operating infrastructure – encompassing critical business management functions such as risk management, business development, investor relations, financial control, technology, and compliance/legal matters – supporting long-term value creation while enabling entrepreneurial independence for the CIOs of these businesses.

We make direct investments from our balance sheet, targeting idiosyncratic opportunities that are typically single-strategy ideas, opportunistic and catalyst driven. These range from listed instruments to private investments and cover a broad range of assets. The breadth and diversity of our LP investments in managed funds, including through Tetragon Partners, also creates co-investment opportunities and ideas which we may develop as direct investments.

“Our GP ownership stakes in asset management businesses through Tetragon Partners and our LP investments in many of its strategies have been powerful drivers of Tetragon’s performance. Through the growth of our GP stakes we benefit from diversified income streams, supporting performance across various economic and market conditions. We also benefit from access to underlying products and opportunities that we might not otherwise have. And we have been able to realise the value of GP stakes alongside their owners.”

Reade Griffith
Chief Investment Officer

Our alpha-driven platform generates ideas, expertise, insights and connections.

 Ways we invest