Mon, Mar 19, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers November 2012

Seeders' Corner - There is more to seeding than just a ticket size + Seeders' Corner news review


Opalesque New York Roundtable

Quite a lot was said during the recent Opalesque New York Roundtable about emerging fund managers and the business of seeding; which is why I am including an outline of this particular conversation here.

Matthew Denning said there are still some investors out there who are willing to take some illiquidity risk at the moment, especially the type of illiquid terms that his seeding venture is currently offering (which requires investors to commit their capital for several years). Denning is Senior Research Analyst at PineBridge Investments, a $68bn asset manager.





Matthew Denning

"So, if you are looking at a 7-8% return profile from a traditional diversified hedge fund investment," he explained, "we think we can get an additional 3-5% from this revenue pot via the seeding arrangements. This will be a perpetual revenue stream, even after you have redeemed the seed capital."

Amanda Haynes-Dale, Managing Director of Pan Reliance Capital Advisors, a boutique fund of hedge funds group, reminisced about emerging managers 20 years ago who could be a couple of guys and a phone, and commented and how that has changed as new businesses must raise $50m to $100m and face increasing demands from regulations and consultants.

"Unfortunately, a lot of the entrepreneurial spirit that emerging managers had 20 years ago has been stymied due to increased regulations and expenses for st......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. Performance - Hedge fund mojo is back with investor hopes at six-year high, These hedge funds produce the most consistently great results[more]

    Hedge fund mojo is back with investor hopes at six-year high From Hedge funds on the heels of a surprisingly strong performance in 2017 are raising hopes for an encore. Investors expect their managers to return 8.5 percent in 2018, according to a Credit Suisse Group AG sur

  2. Investing - Hedge funds amass big bets against world's leading advertisers, Investor Elliott Management buys tiny stake in Wipro[more]

    Hedge funds amass big bets against world's leading advertisers From Hedge funds have amassed bearish bets of more than $3bn against the world's largest advertising companies in an attempt to profit as the industry undergoes ongoing wrenching disruption and slowing growth. Funds i

  3. News Briefs - Investcorp to launch a $100 million PE fund for Omani pension funds[more]

    Bahrain-based investment firm Investcorp will soon launch a $100 million fund dedicated to Oman's Pension Funds as part of its investment plan. 'The Opportunities Fund' will be focused on private equity investments in the U.S. and Europe and will target mid-sized companies across a broad range of se

  4. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  5. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t