Tue, Sep 27, 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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  5. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco