Sun, Mar 29, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner