US fund-of-fund manager invests in European credit hedge fund LNG

European credit hedge fund manager LNG Capital has secured a seed investment from a US fund-of-fund manager, in a deal which also gives the long-short credit manager access to a US distribution channel. Palmer Square Capital Management, an alternative investment specialist based in Kansas City in Missouri, has signed the deal with LNG, in which it will provide a $30 million investment in LNG’s fund and also help LNG raise further capital from US investors.

Palmer Square has an existing partnership with two firms that have big distribution networks in the US. Montage Investments, Palmer Square’s parent company, focuses mainly on raising capital from individual investors and family offices, while Atlantic Asset Management works mainly with institutional investors such as pension funds, foundations and endowments.