Lombard Odier's asset management unit has boosted its alternatives capabilities.

The Volantis investment management team, which manages over $1 billion in assets in UK equity long/short and long-only strategies, will join Lombard Odier Investment Management from AlphaGen Capital.

The transfer, which is subject to regulatory and other approvals, comes as part of an agreement that will see Lombard Odier IM will become the manager of the alternative funds and sub-manager of the long-only fund currently managed by the eight-strong Volantis team. The move is expected to complete in the first quarter of 2017.

The team will join Lombard Odier IM’s existing 1798 hedge fund strategies platform. Based in London, they will manage a niche strategy focused on UK small caps, with access to the firm’s asset management platform, which includes investment strategists, operations, distribution, risk management, compliance and legal capabilities.

“Attracting this team to Lombard Odier represents an important milestone in broadening our alternatives and uncorrelated solutions platform by establishing complementary capabilities in the UK equity long / short space,” said Jean-Pascal Porcherot, head of 1798 hedge fund strategies at Lombard Odier IM.

Paul Graham, chief executive of AlphaGen Capital added: “As our business model is increasingly focused on more liquid and scalable strategies, we agreed with Volantis that moving to Lombard Odier IM would be in the best interest of investors. “The team will continue to manage their funds in the same manner and style that has brought them great success since inception over 10 years ago.”