Global alternative investment manager Nexar Capital Group SCA said Monday it bought Allianz Alternative Asset Management, adding European-based expertise and network to Nexar's primarily New York-based funds-of-hedge-funds business.

Nexar didn't mention the amount it paid for the transaction. Its assets under management and advice will be around $3 billion after the acquisition.

Allianz Alternative Asset Management was owned by units of Allianz SE (ALV.XE, ALIZF), including Allianz France, its global insurer on property and casualty, and life and health insurance. Jean-Francois Vert, who has been leading Allianz Alternative Asset Management's fund-of-hedge -funds business, will also move to Nexar's platform with his team.

Nexar, which manages funds of hedge funds and volatility arbitrage funds, said its strategic partnership with New York-based private equity firm Aquiline Capital Partners has positioned it to act as a consolidator in the fragmented fund-of-hedge-funds industry.

"The combination of Allianz Alternative Asset Management and Nexar validates our view that the industry is ready for consolidation," said Aquiline's Chief Executive Jeff Greenberg.

-By Amy Or, Dow Jones Newswires; 212-416-3142; amy.or@dowjones.com