An asset management company with offices and London and Hong Kong and plans to launch a series of hedge funds has set up business.

Galileo Capital Management, formed under the umbrella of capital raising and consultancy business the Galileo Group, will launch, manage and raise capital for alternative investment funds.

Partner Paul Thompson, who is based in Hong Kong, said the company was planning to launch a number of hedge funds. The first funds would probably be launched by the end of the first quarter of 2010.

Thompson said the funds would be uncorrelated to traditional assets and would be seeking "low volatility and smoothed returns".

The funds would be marketed to both European and Asian investors and would be domiciled in Luxembourg.

Thompson said he believed there was demand for products based in regulated jurisdictions following the financial crisis. However, Galileo would "probably not" be launching Ucits-compliant funds due to the restrictions on certain asset classes.

Galileo would also advise on business entry strategies into China. Thompson said the company's presence in Hong Kong would aid its efforts in the region, particularly when it came to marketing to Asian investors.

Thompson has spent the last decade working in Hong Kong, most recently for investment management company SGI-management.

Galileo was co-founded by Anders Jacobsen, whose experience includes roles at Bankers Trust Investment Management and the Chase Manhattan Bank, and Thompson.