Macquarie Global Investments has set up a new institutional boutique investment firm called Queen Street Partners and has hired Steven Vaughan to head up the new company.

Based in Melbourne, Queen Street Partners is the first new initiative launched by the recently formed Macquarie Global Investments Division, which is part of the Macquarie Financial Services Group.

Matthew Rady, Sydney-based head of Macquarie Global Investments, says Queen Street Partners will develop and manage a range of specialist, multi-manager funds for distribution to institutional investors, both in Australia and internationally.

The new company will be a separately branded, but 100% Macquarie-owned alternative investment management business with boutique-style operational independence.

ôQueen Street Partners was formed because we felt that there was strong demand from institutional investors for access to a portfolio of early stage and start up managers,ö Rady says.

æWe have established (the company) to take advantage of some of the best principles of boutique investment managers, with considerable operational autonomy, separate branding and location, and its own dedicated investment team, supported by institutional infrastructure and a risk management framework provided by Macquarie,ö he adds.

Queen Street Partners will initially have an institutional focus into existing clients of Macquarie Global Investments

The new company will initially have three full time investment professionals, but is expected to grow over time. These staff will be supported by a range of Macquarie
employees providing distribution, marketing and support services.

Vaughan has significant experience in the selection of boutique investment managers and also in advising on business strategy and product design. Previously, he was head of the self-named investment consulting firm Dr Steven Vaughan and Associates, which provided bespoke, research-based advice on investment management practice. In that company, which ceased operations when Vaughan joined Macquarie, his principal capabilities were listed as fund management business strategy, investment strategy and fund structuring, product ratings and wholesale and retail distribution. Vaughan is now employed exclusively by Macquarie Global Investments.

In his previous role and in his 25 years experience in economics, investments and funds management consulting, VaughanÆs ability to ôidentify boutique fund managers that have the potential to add significant valueö will be key to Queen Street PartnersÆ operations, Rady says.

ôHis focus is very much on investment performance and meeting the needs of sophisticated institutional clients,ö he adds.

With the backing of Macquarie Global Investments, Queen Street Partners will initially build a fund focused on early stage boutique fund managers.

While Queen Street Partners will be dealing in the very specialised area of emerging managers, it has already generated a great deal of interest from large superannuation funds and institutional investors, Rady says.

Rady says that while a number of outstanding funds had been incorporated into the new Macquarie Global Investments Division, including the Macquarie Pastoral Fund, Queen Street Partners is the first business that Macquarie Global Investments has launched under its own banner.