Fri, Jul 1, 2016
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. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  2. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  3. Chesapeake Partners to liquidate hedge fund amidst 'hostile environment'[more]

    Komfie Manalo, Opalesque Asia: Chesapeake Partners Management, the hedge fund run by woman fund manager Traci Lerner said it would return investors’ money after 25 years because the market environment has become "hostile" to manage other people’s money, reported

  4. Europe - George Soros says Brexit has ‘unleashed’ a financial markets crisis, Brexit—what we know, Will the UK’s departure be a ‘soft-Brexit’ or a ‘hard-Brexit’?, Brexit: Six-point action plan for asset managers[more]

    George Soros says Brexit has ‘unleashed’ a financial markets crisis From Bloomberg.com: Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Bruss

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.