Wed, Oct 22, 2014
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

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t