Key Takeaways
- • Capel Asset Management officially launched on October 5, 2026, as an independent liquid alternatives boutique following a management buyout from Downing LLP, which owned the underlying liquid alternatives team and strategies.
- • The founding team brings 130 years of combined experience, led by CEO Russell Catley (35+ years in financial services, 25+ years in derivatives expertise), CIO Paul Adams, head of multi-asset Jon Gumpel, and non-executive chair Richard Watts, supported by four investment and operations professionals.
- • Capel launches with two flagship funds: the MGTS Capel Active Defined Return Assets fund (managed by Adams) and the MGTS Capel Diversified Opportunities fund (run by Gumpel), both targeting defined outcome strategies using derivatives, alternatives, and traditional assets.
- • The new firm positions itself to capitalize on demonstrated investor demand for liquid, defined-outcome multi-asset solutions in an environment marked by persistent inflation and elevated volatility, targeting enhanced portfolio risk-return profiles with improved liquidity compared to traditional alternatives.
- • Existing clients have reportedly backed the spinout and management buyout structure, signaling continuity in assets under management and client relationships for the newly independent entity.
Summary
Capel Asset Management, a liquid alternatives boutique spun out of Downing LLP through a management buyout, commenced operations on October 5, 2026. The launch represents an institutionalization of Downing's liquid alternatives division into an independent, owner-managed business. The separation preserves the core investment team and the two strategies they had developed, allowing them to operate as a standalone entity while maintaining existing client relationships.
The leadership structure reflects deep experience across derivatives, multi-asset management, and alternative strategies. CEO Russell Catley brings more than 35 years in financial services and 25 years specializing in derivatives. CIO Paul Adams and head of multi-asset Jon Gumpel lead the investment side, while Richard Watts serves as non-executive chair. The eight-person team collectively holds 130 years of industry experience. The firm's positioning emphasizes owner-management, creating alignment between leadership and long-term operational performance.
Capel's initial product suite consists of two UCITS funds under the MGTS brand. The MGTS Capel Active Defined Return Assets fund, managed by Adams, and the MGTS Capel Diversified Opportunities fund, managed by Gumpel, both employ defined-outcome strategies blending derivatives, alternative investments, and traditional assets. According to Catley, the launch capitalizes on "exceptional growth over the last 18 months" and reflects strong client support for the independent model. Adams highlighted market tailwinds, noting that investors are actively seeking liquid, defined-outcome solutions designed to improve portfolio risk-return profiles in a context of persistent inflation and elevated market volatility. The defined-outcome fund sector has demonstrated robust global growth, positioning Capel to compete within a favorable market segment.
The leadership structure reflects deep experience across derivatives, multi-asset management, and alternative strategies. CEO Russell Catley brings more than 35 years in financial services and 25 years specializing in derivatives. CIO Paul Adams and head of multi-asset Jon Gumpel lead the investment side, while Richard Watts serves as non-executive chair. The eight-person team collectively holds 130 years of industry experience. The firm's positioning emphasizes owner-management, creating alignment between leadership and long-term operational performance.
Capel's initial product suite consists of two UCITS funds under the MGTS brand. The MGTS Capel Active Defined Return Assets fund, managed by Adams, and the MGTS Capel Diversified Opportunities fund, managed by Gumpel, both employ defined-outcome strategies blending derivatives, alternative investments, and traditional assets. According to Catley, the launch capitalizes on "exceptional growth over the last 18 months" and reflects strong client support for the independent model. Adams highlighted market tailwinds, noting that investors are actively seeking liquid, defined-outcome solutions designed to improve portfolio risk-return profiles in a context of persistent inflation and elevated market volatility. The defined-outcome fund sector has demonstrated robust global growth, positioning Capel to compete within a favorable market segment.
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