Key Takeaways
- • XA Investments will become investment adviser to the $91 million Evanston Multi-Alpha Fund, expanding XAI's fund complex to four funds while Evanston Capital remains portfolio manager under a sub-advisory agreement.
- • The Evanston Multi-Alpha Fund reported strong performance with Class I Shares returning +16.4% net and Class A Shares returning +15.5% net for the reporting period, outperforming the HFRI benchmark.
- • XAI and Evanston Capital plan to convert the fund to a daily net asset value (NAV) interval fund structure in the first half of 2027, subject to board and shareholder approvals, to enhance liquidity and expand investor accessibility.
- • Evanston Capital manages $4.4 billion in hedge fund products across endowments, foundations, public plans, and family offices, bringing nearly 25 years of multi-strategy management expertise to the partnership.
- • The conversion to daily NAV interval fund status is intended to broaden market reach to private wealth advisors and institutional investors seeking evergreen alternative investment vehicles with improved liquidity terms.
Summary
XA Investments LLC announced on May 5, 2026, that it will assume the role of investment adviser to the Evanston Multi-Alpha Fund, a $91 million closed-end tender offer fund, pending board and shareholder approvals. Evanston Capital Management will continue as sub-adviser and portfolio manager, maintaining operational control of investment decisions. This partnership expands XAI's alternative investment fund complex to four vehicles and reflects the firm's strategic focus on evergreen alternative investment structures tailored to institutional and wealth management clients.
Evanston Capital brings substantial scale and track record to the arrangement, currently managing $4.4 billion in hedge fund products across a diverse client base including endowments, foundations, public pension plans, and family offices. The firm has operated for nearly 25 years with a disciplined, active multi-strategy approach centered on manager selection and institutional-scale relationships that often provide advantaged fee and liquidity terms. Adam Blitz, CEO and co-chief investment officer of Evanston Capital, emphasized the firm's value-add philosophy, noting that "disciplined, active portfolio management is the best way to aim to deliver differentiated outcomes for investors."
Performance metrics underscore the fund's appeal to institutional investors. The Evanston Multi-Alpha Fund's Class I Shares returned +16.4% net and Class A Shares returned +15.5% net for the reporting period, outperforming the HFRI benchmark. The fund is specifically structured to provide downside protection while maintaining meaningful upside participation, a characteristic particularly valuable during periods of elevated market volatility.
A key strategic element of the arrangement is the planned conversion to a daily net asset value (NAV) interval fund structure, expected to occur in the first half of 2027. This conversion is designed to enhance liquidity terms and expand the fund's accessibility to a broader investor base, including private wealth advisors previously unable to access the fund's institutional-caliber strategy. According to XAI President Kimberly Flynn, the partnership reflects "our continued commitment to expanding investor access to institutional-caliber alternative investment strategies" amid resurging financial advisor interest in hedge fund solutions.
Evanston Capital brings substantial scale and track record to the arrangement, currently managing $4.4 billion in hedge fund products across a diverse client base including endowments, foundations, public pension plans, and family offices. The firm has operated for nearly 25 years with a disciplined, active multi-strategy approach centered on manager selection and institutional-scale relationships that often provide advantaged fee and liquidity terms. Adam Blitz, CEO and co-chief investment officer of Evanston Capital, emphasized the firm's value-add philosophy, noting that "disciplined, active portfolio management is the best way to aim to deliver differentiated outcomes for investors."
Performance metrics underscore the fund's appeal to institutional investors. The Evanston Multi-Alpha Fund's Class I Shares returned +16.4% net and Class A Shares returned +15.5% net for the reporting period, outperforming the HFRI benchmark. The fund is specifically structured to provide downside protection while maintaining meaningful upside participation, a characteristic particularly valuable during periods of elevated market volatility.
A key strategic element of the arrangement is the planned conversion to a daily net asset value (NAV) interval fund structure, expected to occur in the first half of 2027. This conversion is designed to enhance liquidity terms and expand the fund's accessibility to a broader investor base, including private wealth advisors previously unable to access the fund's institutional-caliber strategy. According to XAI President Kimberly Flynn, the partnership reflects "our continued commitment to expanding investor access to institutional-caliber alternative investment strategies" amid resurging financial advisor interest in hedge fund solutions.
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