Tue, Jan 21, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers April 2019

SEEDERS & PLATFORMS: Melanion Capital, Lyxor Americas launches alternative investment co-investment programme for institutional investors

 

Paris-based hedge fund manager opens seeding programme for niche strategies

Melanion Capital, an independent investment manager based in Paris, is launching a seeding programme that can house two to three early-stage managers who run a hedge fund or a managed account. The programme will run for two years, with tickets of up to $10m.

The managers at Melanion know what new managers go through from their own experience seven years ago, when they first launched their dividend futures fund, and from a first seeding experience they had two years ago.

"Because we focused on a niche strategy, we encountered a lot of barriers to entry to the market," Jad Comair, founder and CEO of Melanion, tells Opalesque . "The first barrier was institutional investors who wanted a track record, established AuM, etc., which we did not have at the time. The second barrier was, our product was niche so it did not fit within the plain vanilla category that asset allocators were looking for. The third was, because we were a niche trading product and we were limited in terms of possible expansion, we weren't scalable for investors who had millions to invest and we did not interest seeders who were looking to back managers and get an equity stake."

All these closed doors were closed for the wrong reasons, he believes. So the firm had to stretch a lot of financial resources to cope with the hurdles and get results. And since then, the hurdles have exacerbated, he notes. Melanion's seeding programme will welcome managers who are focused, as they are, on niche strategies that are non-scalable or not plain-vanilla. "We will be seeding them by trading their own dedicated fund and allowing them to build a track record for two years," he explains. "Then, we will open their funds to our client base, market the funds and raise assets. We will appeal to high-networth individuals' risk pockets. We appealed to such investors when lo......................

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: For Howard Marks, investing is like a game, Hedge fund Lone Pine Capital LLC takes big stake in Under Armour, Merit Medical shares rise after hedge fund Starboard discloses 9% stake[more]

    For Howard Marks, investing is like a game From Institutional Investor: Investors can take apply lessons from games like backgammon and poker to their day jobs, according to Oaktree Capital Management's Howard Marks. Marks - who has enjoyed pursuits like Old Maid and gin rummy since

  2. Siguler Guff closes Small Buyout Opportunities Fund IV at $1.58bn[more]

    Laxman Pai, Opalesque Asia: Private investment firm Siguler Guff & Co. has raised $1.58bn for a fourth fund - Small Buyout Opportunities Fund IV - to invest with small buyout managers and directly in their portfolio companies. The New York-based multi-strategy private equity investment firm

  3. J.P. Morgan makes strategic investment in tech company for alternatives[more]

    Laxman Pai, Opalesque Asia: J.P. Morgan has taken an equity stake in Arcesium, an investment-management technology business that D.E. Shaw & Co. launched as an independent company in 2015. New York-based Arcesium LLC is an investment management technology and services firm, offering services i

  4. People: Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud, Swiss investment boutique appoints CIO & CCO[more]

    Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud From Standard: Hedge fund tycoon Lord Fink has been named chairman of bank software start-up Bud, which is backed by HSBC and Goldman Sachs. Fink, dubbed the "Godfather of hedge funds" for his role at Man Group, inves

  5. Legal: Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges, Partners Group sued over alleged breach of non-disclosure agreements[more]

    Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges From Bloomberg: A Toronto man who served time in prison after his hedge fund collapsed later concealed his identity and criminal past to defraud investors of $30 million through an initial coin offering of digital