SEB is merging its London-based Key Asset Management unit with the Alternative Investment Team in Stockholm.

In future the combined business will be overseen by Mikael Spångberg as managing director in Stockholm and Chris Rule as deputy and chief investment officer in London.

SEB believes the two units complement each other: Key is known for its fund of hedge fund business, while the AIT in Stockholm is active in the area of seeding and incubation of alternatives.

SEB said that the change coincides with the departure of Chris Jones from Key after seven years.