Sat, Feb 13, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers February 2013

Seeders' Corner - SEB offers two seeding funds and knowledge transfer too

Mikael Nilsson

SEB is a merchant bank headquartered in Sweden. It has been seeding hedge funds since 2003 and runs two seeding funds, and the two funds have similar structures: Manager Catalyst Fund I (MCF1) was launched in April 2010. It was open for subscription for three months, during which investors committed $280m. SEB drew the capital as they needed it during a year and invested in seven funds. MCF1 is now fully invested.

There was more demand for this type of vehicle among Nordic institutions, so Manager Catalyst Fund II (MCF2) was launched in October 2012. It was open to new investors for three months as well, who committed $300m. MCF2 has done five investments so far and still has two or three more to do. SEB has so far divested from one of the funds, but all the others are still live.

According to Mikael Nilsson, co-portfolio manager of the two seeding vehicles, divested money might go in the current funds or in new ventures. Moreover, each investment that SEB does has a two-year lock up, which means that investors' lock-up may be longer.

SEB does invest in Day-One deals, but prefers acceleration deals generally. The group usually invests between $25m and $50m in each fund, and the aim is to build a diversified hedge fund portfolio with an economic interest on top.

"Each deal we do is evaluated from several angles but generally we look at it from: 1) standalone merits, 2) portfolio contribution and 3) economic deal," Nilsson told Opalesque. "All three needs to be fulfilled for us to do a deal, and if we cannot create a win/win situation for our fund and the managers, the deal is off.  In the economic deal, we prefer gross revenue sharing, however we are flexible and each deal is unique in many ways to address th......................

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. Asia - Hedge fund manager Kyle Bass estimates China's foreign reserves below critical level[more]

    From Nasdaq.com: Investor Kyle Bass stepped up his attack on China's currency, arguing in an investor letter distributed Wednesday that the second-largest economy's foreign reserves are "already below a critical level." The comments mark the latest effort by hedge funds and other investors to raise

  2. Investing - Some hedge funds want to make subprime auto loans next big short, 11 hedge funds that are “all in” on the FANG stocks, Hedge funds short London luxury homes, Cynet raises $7 million from U.S. hedge fund[more]

    Some hedge funds want to make subprime auto loans next big short From Bloomberg.com: A group of hedge funds, convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans. Good luck finding a bank willing to do the trade. Money manage

  3. Investing - Hedge funds see selloff in European bank stocks as buying opportunity[more]

    From WSJ.com: The massive selloff in European bank stocks and bonds is overdone and presents a “phenomenal” buying opportunity, according to some of Europe’s top hedge-fund managers. Despite a 28% slump in European bank stocks this year, including a 38% fall in Deutsche Bank AG and a 34% drop in Soc

  4. Legal - Carlyle accused of fraud by ex-employee, Hedge funds win CDS breach of contract suit against Deutsche Bank, Hedge fund asks for OK on $27.5m Goldman CDO deal, SFO examines Barclays hedge fund profits[more]

    Carlyle accused of fraud by ex-employee From AI-CIO.com: A former portfolio manager claims he was fired for blowing the whistle on “crazy” and “irresponsible” investments. Carlyle Group has been sued by a former portfolio manager for one of its hedge funds, who accused the firm of “knowi

  5. Illiquid assets are all the rage for hedge funds[more]

    From Valuewalk.com: …Institutional investors are increasingly turning to illiquid assets and active management strategies to combat macroeconomic trends, anticipated market volatility and diverging monetary policy, according to a new survey by Blackrock. And this week, Bloomberg has reported that at