Sat, Dec 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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  5. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und