Alpha Strategic, an investment company that hopes to take advantage of consolidation in the hedge fund industry, has raised £3m (€4.3m) on London's Alternative Investment Market.

The firm, whose executive chairman is Colin Barrow, a former managing director of the funds division of what is now Man Group, the London-listed hedge fund firm, said it has raised £2.95m in a placing. It was advised by Strand Partners, a corporate finance boutique, and Teather & Greenwood, the strockbrokers. The directors have invested a further £50,000.