Downing LLP Spin-Off Forms New Liquid Alternatives Firm

The transition marks a strategic pivot for the former Downing liquid alternatives unit, which now functions as an independent boutique. The firm’s leadership—CEO Russell Catley, CIO Paul Adams, head of multi-asset Jon Gumpel, and non-executive chairman Richard Watts—retains control over the MGTS Capel Active Defined Return Assets Fund and the MGTS Capel Diversified Opportunities Fund.

These funds, which package complex hedge-fund-style strategies into daily liquid vehicles, have seen significant traction. The Active Defined Return Assets Fund alone has attracted £280 million since its February 2025 inception. With a total of £405 million ($535.5 million) in assets as of September 30, the firm is now positioning its service offering toward institutional investors, discretionary fund managers, and independent financial advisors. Catley noted that the team’s recent 18-month growth trajectory provided the foundation for this independence, citing positive feedback from existing clients regarding the move.