Wed, Jun 20, 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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a