Wed, Aug 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Deutsche Bank and FRM Partner to launch first hedge fund seeding managed account platform

Tuesday, January 10, 2012

Stephane Farouze
Opalesque Industry Update - Deutsche Bank and Financial Risk Management (FRM) today announced a partnership to launch the industry's first hedge fund seeding managed account platform.

The dbalternatives Discovery platform, based on Deutsche Bank's established and award winning dbalternatives managed account platform, extends the investor protection afforded by its managed account framework into the hedge fund seeding arena. Developed in 2002, the dbalternatives managed account platform addresses hedge fund investor concerns regarding fraud, transparency, liquidity and independent valuation.

The aim of hedge fund seeding is to identify and invest in the funds of select emerging hedge fund managers and to provide strategic guidance to support their development. In return for committed capital, seeding investors receive fund returns and a share of the manager's revenue. The latter represents an attractive way to benefit from any growth of the hedge fund manager's assets under management.

FRM, through its hedge fund seeding division FRM Capital Advisors (FCA), will select and negotiate strategic investments in emerging managers which will be made through managed accounts on the dbalternatives Discovery platform. Deutsche Bank will also raise capital for a seeding fund which will invest in early stage hedge funds selected by FCA, which evaluates over 500 seeding opportunities annually through FRM's global investment team. Investors can therefore now utilise a high quality managed account platform to invest in a seeding fund or to invest directly into emerging hedge funds.

Deutsche Bank's Global Head of Fund Derivatives, Stephane Farouze said: "dbalternatives Discovery is set to reinvent hedge fund seeding through the introduction of managed accounts, which we believe are crucial when investing in emerging managers. Whatever the pedigree of the manager, it's in these early stages that close monitoring of risk and style drift are most essential. The dbalternatives Discovery platform will provide this through the tried and tested managed account infrastructure we have been offering to investors for the last 10 years. We are pleased to be partnering with FRM in this important new business."

FRM's Chief Executive Officer, Blaine Tomlinson added: "Structural changes in the hedge fund industry have created a new wave of opportunities in seeding. The institutionalisation of the industry has resulted in talented managers needing strategic capital to reach critical mass. In response, we built a well resourced seeding capability to identify these managers and make strategic investments. Now, we are partnering with a leader in managed account platforms with a substantial client franchise to bring seeding to a new level and a wider group of investors."

dbalternatives, Deutsche Bank's integrated hedge fund offering with $12bn of assets under management including managed accounts, hedge fund UCITS and ETF offerings, provides investors with unified direct access to Deutsche Bank's hedge fund products. Full press release:Source
km

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added