ADI, the French alternative investment manager, has arranged €25m ($30m) of seed capital for a start-up hedge fund in a diversification of its business into hedge fund incubation.

The fund manager, which has amassed €5.8bn under management in the six years since launch, has joined forces with Matmut and Maaf, two French insurers, to set up a hedge fund incubator called NewAlpha Participations. The incubator is managed by NewAlpha Advisers, a subsidiary of ADI created specifically for the fund.