Mon, Sep 24, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers September 2017

SEEDERS & PLATFORMS: Tages Capital

 

Outlook is upbeat for capital raising and hedge fund seeding

A hedge fund seeder talks to Opalesque about the current trends in his industry.

Tages Capital, one of the most active European seed investors, is seeing interest from two main investor bases, Mark de Klerk, Head of Seeding Strategies, tells Opalesque in a video interview. One is on the hedge fund allocator side, the other on the private equity side. The former looks to enhance returns in the low yield environment by investing early-stage and getting an interest in the emerging fund' business, "in what is still a very high margin industry at no additional costs."

"They're attracted to the positive convexity that seeding can provide to their portfolio," de Klerk says. "If you think about it, the revenue share participation can never be negative." So these investors are in a position to target returns of 12% to 15% net compared to the average hedge fund return of 5% p.a.

Investors on the private equity side are more interested in the diversification aspect of such investments. They are also attracted to the higher margins of this industry and the natural exits, as well as the target profile and its lower duration, "at arguably a very different point in the cycle."

Targes has invested approximately $700m of seeding or acceleration capital across 15 transactions over the past four years. The firm, which is part of Tages Group, manages two dedicated seeding vehicles with $400m in AuM, one focused on offshore funds, the other on UCITS. Bifurcation of seeding industry

As hedge fund returns have been "challenging" of late, seeding has provided an enhancement......................

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. The incredible shrinking hedge fund, For hedge fund stars, being right in 2008 proved to be a curse[more]

    The incredible shrinking hedge fund From Bloomberg: You'd be forgiven for thinking the hedge fund industry might be starting to rebound. Industry assets are at a record $3.2 trillion this year, and a brand-new ?rm just brought in an unprecedented $8 billion. But the reality isn't so rosy.

  2. SWF: Saudi Arabia's sovereign wealth fund raises $11bn loan with 15 banks[more]

    From Reuters: Saudi Arabia's sovereign wealth has raised an $11 billion loan from a total of 15 banks, the Maaal financial news website reported on Tuesday, citing unnamed sources. A source with direct knowledge of the matter told Reuters last month that the Public Investment Fund (PIF) will p

  3. Hedge fund billionaire spells out America's worst nightmare, Sir Michael Hintze: Response to global financial crisis elevated populism[more]

    Hedge fund billionaire spells out America's worst nightmare From SMH: Billionaire hedge fund manager Ray Dalio effectively spelled out what doomsday looks like for the US on live television. The founder of Bridgewater Associates predicted the US economy is about two years from a downtur

  4. Lehman's carcass has handed huge profits to distressed funds[more]

    From Bloomberg: It was a bold move: buy at Lehman Brothers's darkest hour. But a decade after Lehman's collapse, a handful of hedge funds that bought up the bank's debt for pennies on the dollar have made even more money than seemed possible. More than $124.6 billion has flowed to Lehman credi

  5. 2008 Crisis Review: Kehoe: Hedge funds better off now than pre-crisis, Zombie hedge fund stakes haunt investors a decade after Lehman, Most of the 'big shorts,' who thrived during the financial crisis, have faltered since 2008, The financial crisis killed hedge-fund performance[more]

    Kehoe: Hedge funds better off now than pre-crisis From Bloomberg: Investors are in a better position today than prior to the financial crisis in terms of the liquidity that is available, according to Tom Kehoe, Global Head of Research at AIMA. Elaborating on a new report regarding he