Key Takeaways
- • Capel Asset Management launched on 5 October 2026 as an independent liquid alternatives boutique following a management buyout from Downing LLP, with approximately £405m in assets under management.
- • The founding team comprises Russell Catley (CEO), Paul Adams (CIO), Jon Gumpel (head of multi-asset), and Richard Watts (non-executive chair), collectively bringing 130 years of investment experience.
- • The firm will manage two initial strategies: the MGTS Capel Active Defined Return Assets fund (led by Adams) and the MGTS Capel Diversified Opportunities fund (led by Gumpel), both targeting defined outcomes through derivatives, alternatives, and traditional assets.
- • The launch capitalizes on growing institutional demand for liquid alternative solutions that offer defined outcomes, improved risk-return profiles, and portfolio liquidity in an environment marked by persistent inflation and elevated volatility.
Summary
Capel Asset Management officially launched as an independent firm on 5 October 2026, establishing itself as a specialized liquid alternatives boutique through a management buyout of Downing LLP's alternatives division. The £405m operation represents the formalization of the liquid alternatives team's separation from its parent organization and reflects the strategic ambition of four senior investment professionals to operate as an owner-managed entity.
The founding leadership brings substantial industry tenure to the venture. Russell Catley assumes the role of CEO, while Paul Adams, appointed Chief Investment Officer, will oversee the MGTS Capel Active Defined Return Assets fund. Jon Gumpel, head of multi-asset strategies, will manage the MGTS Capel Diversified Opportunities fund. Richard Watts serves as non-executive chair. The four principals are supported by an operations and investment team of four additional professionals.
Capel's investment mandate centers on defined outcome strategies that blend derivatives, alternative investments, and traditional assets to target specific risk-return objectives. The firm positions itself within the broader growth trajectory of the defined outcome sector globally, capitalizing on institutional appetite for solutions that improve portfolio efficiency amid persistent inflationary pressures and heightened market volatility. According to Catley, the launch builds on "exceptional growth over the last 18 months," and the existing client base has reportedly endorsed the transition to independence. Adams emphasized that defined outcome solutions are increasingly attractive to investors seeking to manage downside risk while maintaining portfolio liquidity—a positioning that aligns with broader institutional trends toward outcome-focused alternatives management.
The founding leadership brings substantial industry tenure to the venture. Russell Catley assumes the role of CEO, while Paul Adams, appointed Chief Investment Officer, will oversee the MGTS Capel Active Defined Return Assets fund. Jon Gumpel, head of multi-asset strategies, will manage the MGTS Capel Diversified Opportunities fund. Richard Watts serves as non-executive chair. The four principals are supported by an operations and investment team of four additional professionals.
Capel's investment mandate centers on defined outcome strategies that blend derivatives, alternative investments, and traditional assets to target specific risk-return objectives. The firm positions itself within the broader growth trajectory of the defined outcome sector globally, capitalizing on institutional appetite for solutions that improve portfolio efficiency amid persistent inflationary pressures and heightened market volatility. According to Catley, the launch builds on "exceptional growth over the last 18 months," and the existing client base has reportedly endorsed the transition to independence. Adams emphasized that defined outcome solutions are increasingly attractive to investors seeking to manage downside risk while maintaining portfolio liquidity—a positioning that aligns with broader institutional trends toward outcome-focused alternatives management.
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