MFS forms unit to offer hedge-fund capital

Boston asset manager MFS Investment Management today said it is entering the alternative investments business with a new subsidiary that will provide seed and expansion capital to emerging hedge fund managers.

Four Pillars Capital Inc., presided over by Thomas A. Knott, will be run as a separate unit from MFS; the two will not share investment resources, though MFS will provide key operational, marketing, and distribution support.

MFS, which invented the mutual fund, is part of Sun Life Financial Inc., of Toronto.
(By Chris Reidy, Globe staff)