Thu, Nov 27, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers May 2013

Seeders' Corner - Hermes BPK and Northern Lights' Accelerator Fund focuses on mitigating operational and business risk

Mark Baker

In September 2011, Northern Lights Capital Group, LLC, an $11bn private equity firm based in Seattle, and Hermes BPK Partners LLP, a $1.6bn fund of hedge funds based in the UK, partnered to launch a new investing platform that would provide access to early stage hedge fund managers for institutional investors. The Accelerator Fund was started in March this year, just as it was making its first investment in an emerging manager called Taurasi Capital Management, a new fundamental long/short credit hedge fund based in New York.

Hermes BPK, which was started in 2008, is the hedge fund division of Hermes Fund Managers, a £30bn (US$45bn) asset manager which itself is owned by BT Pension Scheme, the largest pension fund in the UK.

"Hermes and BT are the founding fathers of the corporate governance movement," Mark Barker, Hermes BPK's founding partner and co-CIO told Opalesque. "There was a call coming from our anchor investor saying ‘the hedge fund industry is broken, be a part of fixing it.' This was really to address the governance and operational issues that had become glaringly apparent during the crisis. When we started putting money to work, we focused on improving their governance structures, their operational structures, their transparency and their general investor alignment."

Hermes likes to invest in smaller managers, but as many of them had questionable operational and governance standards, the fund of funds worked with them to improve those standards. But then the managers' assets invariably increased substantially as they became attractive to institutions. So they did not stay small, and this was a......................

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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  4. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  5. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed