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HEDGE FUND BACKERS
Investors Targeting Stakes in Hedge Fund Operators
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Affiliated Managers
Group
Prides Crossing, Mass.
Jay Horgen
[email protected]
617-747-3300
Established
Yes
Publicly traded company typically buys minority stakes in hedge
fund operators, while taking majority positions in traditional
managers. Currently backs 30 firms with a combined $617 billion
under management. Most recently bought a majority stake in
Veritas Asset Management, which runs Asia-focused equity
investments via hedge funds and long-only vehicles, and
increased its minority position in AQR Capital. However, a deal to
buy a 20% stake in D.E. Shaw from the Lehman Brothers estate
fell through. Also has investments in other blue-chip managers
including BlueMountain Capital and ValueAct Capital.
Aligned Asset
Managers
Stamford, Conn.
David Minella
[email protected]
203-504-3210
Established
No
Launched in 2011 with a commitment of up to $200 million
from private equity firm GTCR. Has completed only one deal so
far, with real estate investor Townsend Group. It’s unclear at
this point if Aligned will do more deals. It set out to take
majority stakes in large, well-established asset managers
including hedge fund firms. Co-founder David Minella is best
known as former chief executive of Value Asset Management, a
now-defunct fund-of-funds business based in Madrid.
Alpha Strategic
London
Established
Antoine Dupont-Madinier
[email protected]
44-207-227-0635
Yes
Has been targeting minority stakes in well-established fund
managers and individual funds since 2005, most recently
buying a piece of the $1.7 billion Premium Point Investments in
September 2014. Two earlier deals were with Winton Capital, in
2006, and Ikos Asset Management, in 2009 (Ikos stake has
been liquidated). Chief executive Alistair McKay, formerly of
Credit Suisse’s Asset Management Finance, has been on board
since 2012. Alpha Strategic is now wholly owned by Northill
Capital, which added to its 51% ownership stake by purchasing
the rest of the business in late 2013.
Ascalon Capital
Sydney
Chuak Chan
[email protected]
852-3961-0828
Startup,
Emerging,
Established
Yes
Westpac Banking unit uses balance-sheet capital to buy
minority stakes in asset managers, mostly hedge fund
operators running $50 million to $200 million, and sometimes
more. Seeks long-term relationships, typically investing $50
million or more per deal. Has stakes in seven managers, most
recently taking a position in equity shop Morphic Asset
Management of Sydney in mid-2014. Sold its 45% stake in H3
Global Advisors to Henderson Global Advisors in 2013.
Asset Management
Finance
New York
Sam Schwartz
sam.schwartz
@credit-suisse.com
212-325-5151
Established
No
In early 2014, Credit Suisse bought the remaining 17% of AMF
it didn’t own already. Holds minority stakes in 17 managers
including Brigade Capital, Reservoir Capital and Tricadia
Capital. Portfolio company FX Concepts went out of business in
2013. While Credit Suisse has no intention of funding new
deals, it plans to maintain AMF’s existing positions. The
investments all were made with balance-sheet capital.
HEDGE FUND ALERT: October 1, 2014, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700
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October 1, 2014
2
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Aurora Investment
Chicago
Justin Sheperd
[email protected]
312-762-6700
Startup,
Emerging
Yes
Long-established fund-of-funds manager entered seeding
business in February 2014, when it agreed to back equity-fund
shops Adi Capital and Brenham Capital. Expects to invest $50
million to $150 million per manager, in exchange for a share of
revenue. Aurora, which runs $9.2 billion overall, is funding the
initiative with capital from its existing multi-manager vehicles,
at least for now.
Bainbridge Partners
London
Antoine Haddad
antoine
@bainbridgepartners.com
44-207-590-1800
Startup
No
Fund-of-funds manager began marketing its debut seeding
vehicle in early 2014. But the effort is on hold until it can find
an anchor investor. Hopes to raise $100 million to invest in
perhaps five startups in exchange for revenue-sharing deals.
Bainbridge’s funds of funds typically invest in high-yield asset
managers with less than $500 million of assets.
Blackstone
New York
Logan Pritchard
logan.pritchard
@blackstone.com
212-390-2757
Startup,
Established
Yes
World’s biggest hedge fund investor has deployed most of the
capital in a $2.4 billion seeding vehicle it launched in 2011.
Blackstone Strategic Alliance Fund 2 has 13 investments to
date, with room for perhaps 1-2 more. Its most recent deal: a
$200 million commitment to Raveneur Investment, led by
former Tricadia Capital portfolio manager Mark Black.
Blackstone is now talking to investors about a third seedcapital fund. Meanwhile, it continues to market a separate fund
that so far has raised $2.3 billion, not including co-investments,
to buy minority stakes in large, established hedge fund firms.
That vehicle, with a $3 billion fund-raising goal, has closed one
deal so far, with Senator Investment.
Bridge Capital
Tokyo
Takashi Yabuuchi
takashiyabuuchi
@bridgecapital.co.jp
81-3-5210-2761
Startup
Yes
Runs about 7 billion Japanese yen ($64 million) in vehicles that
invest in startup hedge fund operations. In August 2014,
Nomura announced it would supply an additional 3 billion yen
for the fund-incubation business. The deal gives Nomura an
option to take an ownership stake in Bridge.
Carlyle Group
Washington
David Johnson
[email protected]
212-813-4703
Established
Yes
Since 2010, the buyout giant has purchased majority stakes in
four hedge fund shops: Claren Road Asset Management,
Emerging Sovereign Group, Oklo Financial and Vermillion Asset
Management. In February 2014, it picked up fund-of-funds
manager Diversified Global Asset Management. Carlyle is
investing balance-sheet capital with the intention of holding
onto the businesses indefinitely. Is actively looking to acquire
controlling stakes in other managers.
Context Capital
Bala Cynwyd, Pa.
Ron Biscardi
[email protected]
610-538-6100
Startup,
Emerging
Yes
Inked first two seeding deals in 2012, using partner money to
launch Context BH Partners and Green Owl Capital. Continues
to scout promising startups, as well as emerging managers in
need of acceleration capital, even as it focuses on developing
other businesses. Among them: launching mutual funds that
are subadvised by hedge fund managers. Context also runs a
managed-futures conference business that it took over from
AlphaMetrix following that firm’s collapse in 2013.
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October 1, 2014
3
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Dyal Capital
New York
Michael Rees
[email protected]
212-476-9021
Established
Yes
Neuberger Berman unit is the most active player among
backers of established fund-management firms, having bought
stakes in 10 operations since 2011. Its $1.3 billion debut fund is
fully deployed. On Sept. 29, held final close for a second fund
with $2.1 billion of pledges. Recently bought a 10% stake in
private equity firm Providence Equity Partners, which owns $12
billion hedge fund manager Benefit Street Partners. Other
portfolio companies include Capital Fund Management, Halcyon
Asset Management, MKP Capital and Waterfall Asset
Management.
Dymon Asia Capital
Singapore
Jay Luo
[email protected]
852-8170-1066
Startup
Yes
In early 2014, the $3.5 billion hedge fund manager launched a
joint venture with Singapore sovereign wealth fund Temasek
Holdings, with Temasek committing $500 million to invest in
new hedge funds. It also took a minority stake in Dymon. The
joint venture’s first deal was with London startup Port Meadow
Capital, led by former SAC Capital executive Carl Vine.
Estancia Capital
Scottsdale, Ariz.
Danny Kang
dkang
@estanciapartners.com
480-448-5001
Emerging,
Established
Yes
In 2013, held final close with $180 million for a fund that seeks
to buy minority stakes in 7-10 alternative-investment firms,
traditional asset managers and service providers. Looking to
invest $5 million to $50 million per deal, including coinvestment capital. In hedge fund arena, scouting multistrategy shops, managers with unusual strategies, and other
firms that buy stakes in established fund operators. Targeting
businesses with less than $50 million of operating income.
Fort Greene Partners
New York
Richard Wayner
richard.wayner
@fortgreenepartners.com
917-692-3700
Startup
No
Originally backed by James Alpha Management, the business
set out in late 2013 to raise $250 million to $500 million with
the aim of seeding minority- and women-owned startups.
James Alpha, an alternative-investment manager with $94
million of assets at yearend 2013, appears no longer to be
involved in the effort.
Fortress Investment
New York
Stuart Bohart
[email protected]
212-798-6124
Startup,
Emerging,
Established
Yes
Launched an “affiliated managers” program in early 2014 that
seeds new fund operations in exchange for “perpetual”
ownership stakes in the businesses. Fortress also charges the
managers for back-office support. Its first deal was with Adam
Levinson, who runs the $3.1 billion Fortress Asia Macro Fund.
He soon plans to move the fund to his new firm, Graticule Asset
Management Asia. Under the deal, Fortress will take 42.5% of
Graticule’s earnings in 2014, a cut that gradually will drop to
27%. Fortress plans to back 1-2 managers annually.
Goldman Sachs
New York
Ali Raissi
[email protected]
44-207-774-1000
Ryan Roderick
[email protected]
212-902-1000
Startup,
Established
Yes
2011-vintage seeding vehicle that raised $650 million is now
fully invested. Separately, Goldman has raised at least $400
million for a second iteration of its Petershill Fund, which
launched in 2007 to buy minority stakes in large hedge fund
managers. Petershill 1 deployed only about 60% of its capital.
While profitable, it backed several firms that went bust.
Petershill 2 so far has invested in two managers: Knighthead
Capital and Pelham Capital. The Petershill team is led by Ali
Raissi, while the seeding business is run by Ryan Roderick.
Grosvenor Capital
Chicago
Jonathan Levin
312-506-6647
Michael Kirchner
[email protected]
Startup,
Emerging
Yes
Fund-of-funds giant held final close with $475 million for its
debut seeding fund in 2013. Invests $50 million to $100 million
per manager. Has done deals with Continuum Investment,
Engaged Capital, Nightscape Capital, Tor Capital and one other
firm. Has capacity for one more transaction.
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October 1, 2014
4
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Harvest Funds
Management
Marblehead, Mass.
Eli Kent
[email protected]
781-639-7054
Startup,
Emerging
Yes
Finished raising north of $100 million for its debut seeding
vehicle in the past year. That capital is fully deployed, and the
firm is making additional investments on a deal-by-deal basis.
Harvest has been investing $30 million to $50 million per deal.
But given investor demand, it plans to substantially increase
the per-deal amount. Recent transactions include backing
launches by Clearance Capital and Ecofin, and providing
acceleration capital to Boardman Bay Capital. Expects another
seed deal before yearend. Harvest Funds’ parent, multistrategy manager Moody Aldrich Partners, plans to provide
operational support to future seedlings.
Horton Point
New York
Dimitri Sogoloff
[email protected]
212-939-7300
Startup,
Emerging
Yes
After raising an undisclosed amount via an initial round of fund
raising in 2013, the firm invests in managers running as little
as $1 million to $5 million. Only backs systematic traders, who
must use Horton Point’s infrastructure. Has done eight deals so
far. Raises money via commingled vehicles and separate
accounts. Led by Dimitri Sogoloff, who previously co-founded
Alexandra Investment, a once-$2 billion hedge fund shop that
shut down during the financial crisis.
HS Group
Hong Kong
Michael Garrow
[email protected]
852-3968-5029
Startup,
Emerging
Yes
Founded in 2013 by former Goldman Sachs executive Johannes
Kaps and one-time Blackstone executive Michael Garrow to
invest in new and emerging hedge fund managers in Asia.
Received startup capital, operational and marketing support
from TPG Capital and Gottex Fund Management, which own
minority stakes in the business. Debut investment was a $100
million deal in April 2014 with Pleiad Investment, run by two
former Soros Fund Management traders.
IMQubator
Amsterdam
Jeroen Tielman
Startup,
[email protected] Emerging
31-62-937-9265
No
With backing from Dutch pension giant APG, has deployed
about $25 million per manager in perhaps 11 deals via a fund
that’s fully invested. IMQubator now looking for a new financial
backer. Switched from seed deals to focus primarily on
acceleration capital in 2013, targeting managers that run up to
$125 million. Last known deal was in second half of 2013 with
True Partner Fund of Hong Kong. IMQubator vehicle has
flexibility to recycle capital, but that’s unlikely at this point
given plan to wind down APG’s investment beginning in 2015.
Infusion Global
Partners
Boston
John Sinclair
john.sinclair
@infusionglobal.com
617-869-5945
Emerging
Yes
Raised an initial $75 million in early 2014 for its debut
acceleration-capital vehicle, which will invest in roughly eight
managers in exchange for cuts of their profits above certain
benchmarks. Looking to invest $15 million-$20 million per deal
in firms already running $50 million-$75 million. Has been
narrowing down list of prospective investments, but unclear if
it has deployed any capital.
Investcorp
New York
Nick Vamvakas
Startup,
[email protected] Emerging
917-332-5700
Yes
Seasoned seed investor deploys balance-sheet capital, but is
open to working with co-investors. Deployed $450 million prior
to the financial crisis, and since 2011 has vetted 1,800 new and
emerging managers. Most recently invested an unknown
amount of acceleration capital with London-based Eyck Capital.
Other recent deals include a $50 million seed investment in
Kingsguard Advisors and a $50 million acceleration-capital
investment in Kortright Capital.
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October 1, 2014
5
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
James Alpha
Management
New York
Kevin Greene
[email protected]
212-201-5520
Startup,
Emerging
Yes
Raises capital on a deal-by-deal basis to invest alongside
partner money. Targets both startups and more-established
firms. Completed first seed deal in 2011, when it helped launch
a real estate-focused vehicle run by Andrew Duffy.
KKR
New York
Robert Recer
[email protected]
212-750-8300
Startup,
Established
Yes
Legendary buyout shop has lately been using its hefty balance
sheet to buy or launch hedge fund operations. In addition to
acquiring fund-of-funds manager Prisma Capital in 2012, KKR
took minority stakes in Nephila Capital in 2013 and BlackGold
Capital in mid-2014. Now looking to make occasional seed
investments as well. Recently backed launch by Feng Hsiung,
former co-manager of York Capital’s York Asian Opportunities
Fund. In 2013, Todd Builione joined KKR from Highbridge
Capital as co-head of the hedge fund business.
Larch Lane Advisors
Rye Brook, N.Y.
David Katz
[email protected]
914-798-7600
Startup,
Emerging
No
Has spent a couple of years trying to raise up to $1.5 billion for
a hedge-fund seeding vehicle, but has made no progress.
Continues to manage a $400 million joint-venture seeding fund
it launched with PineBridge Investments in 2008. Larch Lane is
among the more experienced seed investors, having entered
the market in 2001. Last known deal, via the PineBridge joint
venture, was with C12 Capital in 2011.
Leucadia National
New York
Marc Fuller
[email protected]
212-460-1900
Startup,
Emerging
Yes
After buying Jefferies in 2013, diversified holding company
formed asset-management division that seeks to acquire
stakes in new and emerging alternative-investment
businesses, including hedge funds and commodity-trading
vehicles. In August 2014, reached deal with former SAC Capital
executive Sol Kumin to seed his Folger Hill Asset Management
with $400 million, on condition it raises at least that amount
from other investors first. Also owns Topwater Capital, which
offers “first loss” seed capital to startup fund shops.
Lily Pond Capital
New York
Harlan Simon
hsimon
@lilypondcapital.com
646-572-4600
Startup,
Emerging
Yes
Formed in 2013 when global-macro investor Howard Kurz
transformed his hedge fund shop into a seeding business.
Raised capital for a fund that takes stakes in management
firms in exchange for seed money as well as operational
support and marketing assistance. Has backed three firms so
far, including AlphaParity, led by two Tudor Investment alumni,
and Landscape Capital.
M.D. Sass
New York
Phil Sivin
[email protected]
212-843-8944
Startup
Yes
Partners Hugh Lamle and Marty Sass looking to back startups
using their own money. Will invest in both hedge fund shops
and other types of asset managers. Meanwhile, M.D. Sass has
been winding down a joint-venture seeding business with
Macquarie Group. Sold its stake in Waterfall Asset Management
to Dyal Capital in 2013.
Mariner Investment
Harrison, N.Y.
Danielle Beyer
[email protected]
914-670-2884
Startup,
Emerging
Yes
Struck deal with Alaska Permanent Fund in 2012 under which it
is deploying $500 million to back a dozen new managers, with
the idea of incubating them and spinning off the most
successful ones. As of September 2014, had backed six fund
shops representing a range of strategies. Invested other client
capital in Robert Heine’s Morven Advisors, which launched in
2013. Also has done a number of acceleration deals, and has
long backed spinoffs by its own portfolio managers, including
Caspian Capital, Pembrook Capital and Tricadia Capital.
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October 1, 2014
6
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Maverick Capital
Dallas
Bates Brown
bates.brown
@maverickcap.com
212-418-6958
Startup,
Emerging
Yes
Set aside $100 million of proprietary capital in 2011 for its first
seeding vehicle. Invests perhaps $20 million per deal, either for
a minority ownership stake or a cut of revenue. Has done four
deals, with Rinehart Capital, Sentinel Rock Partners, Sycamore
Lane Partners and Totem Point Management. Anticipates two
more transactions. Rinehart wound down in September 2014
after suffering losses each year since 2012. Maverick plans to
raise a commingled seeding fund once it has a track record to
show. Bates Brown, who oversees the firm’s fund-of-funds
unit, also runs the seeding business.
Meritage Group
San Francisco
Meredith Barth
mer-hfs
@meritagegroup.com
212-906-8660
Startup
Yes
Led by Nathaniel Simons, son of Renaissance Technologies
founder James Simons, the $8 billion firm mainly invests in
other managers’ hedge funds on behalf of Renaissance
employees. Has four seed deals, most recently with Anandal
Capital. Inked deal with Sarissa Capital in 2013, and earlier
invested $150 million in Lamond Capital and as much as $300
million in Hutchin Hill Capital.
NewAlpha Asset
Management
Paris
Antoine Rolland
[email protected]
33-1-44-56-52-34
Startup,
Emerging,
Established
Yes
Working on a number of projects, including sourcing deals in
Asia via a $50 million partnership with Woori Absolute Partners.
Meanwhile, is beginning to deploy the second tranche of a
France-focused seeding fund targeting long-only managers.
Also is backing launches in U.S. with $100 million from a single
investor. In addition, plans to begin buying stakes in
established asset managers, including hedge fund shops. Unit
of OFI Asset Management merged last year with long-only seed
platform Next AM.
Northern Lights
Capital
Seattle
Michael Daley
[email protected]
206-965-8878
Emerging
No
Announced merger with Sydney-based Treasury Group in
August 2014 that creates entity with stakes in 21 small asset
managers, none of them hedge fund shops. But searching for
investor willing to back an initiative that would deploy
acceleration capital to emerging hedge fund managers. Had
been investing acceleration capital via a $250 million joint
venture with Hermes BPK Partners. Hermes pulled the plug in
mid-2014 after Northern Lights closed just two deals.
Northill Capital
London
Ryan Sinnott
[email protected]
44-20-7016-4119
Startup,
Emerging,
Established
Yes
Founded in 2010 by former BNY Mellon executive Jonathan
Little with backing from Italy’s Bertarelli family, who founded
the Serono pharmaceutical company. Takes majority stakes in
startups as well as established managers looking to cash out
partners. Investments include Goldbridge Capital, Securis
Investment and Wellfield Partners. Converted 51% stake in
hedge fund backer Alpha Strategic to full ownership in 2013.
Orix Corp.
Dallas
Chris Suan
[email protected]
214-237-2000
Startup,
Established
No
Japanese financial-services giant appears no longer to be in
the business of buying stakes in hedge fund operations, though
it may still be interested in other types of asset managers. Best
known for acquiring a 60% stake in Mariner Investment in
2010. Also bought a 90% stake in Dutch manager Robeco from
Rabobank in July 2013. Former FrontPoint Partners chief
investment officer Michael Kelly, hired in 2012 to expand the
business in the U.S., left in June 2014 along with former Asset
Management Finance executive Sean Gallary and others.
Taking over for Kelly was Chris Suan, who previously worked at
KKR and MatlinPatterson.
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October 1, 2014
7
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Palmer Square
Capital
Mission Woods, Kan.
Chris Long
investorrelations
@palmersquarecap.com
816-994-3200
Established
Yes
Took advantage of challenging fund-raising climate following
the financial crisis by deploying capital from two seeding funds
from 2010 to 2012. Those vehicles backed four fund launches:
Cypress Capital Onshore, Geneva Arbitrage Fund, LNG Investor
Holdings and Millstreet Credit Fund. Redeemed from Cypress
and Geneva in 2014, reallocating the capital to LNG and
Millstreet. No longer scouting seed deals, but seeking to buy
stakes in established credit-focused asset managers, including
hedge fund shops. Palmer Square, an arm of Montage
Alternative Capital, manages a series of debt funds and
collateralized loan obligations.
Paloma Partners
Greenwich, Conn.
Michael Liebowitz
[email protected]
203-861-3230
Startup
Yes
Founded by Donald Sussman in 1989, the $2.2 billion firm
backs managers representing a range of strategies, but favors
quantitative investors. Seedlings must run money exclusively
for Paloma for some years before raising outside capital.
Typically invests $100 million to $150 million per deal, but
staked Reef Road Capital with $300 million in 2013. Backed
statistical-arbitrage shop AlphaCrest Capital in mid-2014.
Protege Partners
New York
Mike Barron
[email protected]
212-784-6321
Startup
Yes
Makes seed investments of $50 million to $100 million in
exchange for cuts of managers’ revenues. Runs $2.1 billion via
multi-manager funds and separate accounts that pursue both
seed deals and traditional fund investments with smaller firms.
Has 40% allocation for seed investments. Backed Londonbased Ledbury Capital, which began trading in July 2014, as
well as 2012 launch of New York-based Signpost Capital.
Pulse Capital
New York
Ibrahim Gharghour
[email protected]
212-430-1860
Startup,
Emerging
No
Founded in 2011 by Investcorp alumni Ibrahim Gharghour, Gary
Long and Thomas Middelhoff. In 2013 inked first deal, with
statistical-arbitrage manager Sunofia Capital. General counsel
Jeffery Iverson left for Blackstone in 2013 and was replaced by
Kimia Setoodeh, formerly of Tower Research. Deputy chief
investment officer Joe Burns also left, for TCS Capital.
Q Investments
Fort Worth, Texas
Brandon Teague
[email protected]
817-332-9500
Startup
Yes
Since re-launching seeding business in 2010, has backed
Gratia Capital of Los Angeles, North Yard Capital of New York
and Spartan Capital of Charlotte. Primarily looks at long/short
equity fund operators, but open to debt and event-driven
strategies. Runs some $1.7 billion in a variety of vehicles.
Almost half of capital supplied by partners.
Reservoir Capital
New York
Elizabeth Flisser Rosman
[email protected]
212-610-9000
Startup
Yes
Has backed plenty of successful managers since the 1990s,
including Anchorage Capital, Glenhill Capital and Och-Ziff
Capital. Has deployed half of its first fund dedicated to seeding
— a 2012-vintage vehicle with $1.4 billion of equity. Its four
deals include Wingspan Investment, led by former Goldman
Sachs executive Buckley Ratchford. Also backed London
startup Camares Capital. Occitan Capital, which got a seed
investment from Reservoir in 2011, shut down in 2013.
RIT Capital
London
Ron Tabbouche
[email protected]
44-20-7647-6203
Startup
Yes
Publicly traded trust led by Jacob Rothschild. He and his family
own 18% of RIT, which has a £2.2 billion ($3.6 billion) market
capitalization. Has seeded a number of startups over the years
in exchange for revenue shares. Recent deals include a $100
million investment in Farmstead Capital, which launched in
November. Also backed Cresco Capital.
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October 1, 2014
8
Hedge Fund
ALERT
HEDGE FUND
BACKERSStakes in Hedge Fund Operators
Investors
Targeting
Types of
Firms
Targeted
Dry
Powder?
Sponsor
Contact
The Skinny
Samena Asset
Managers
Hong Kong
Ramiz Hasan
[email protected]
852-3583-6072
Startup,
Emerging
No
Joint venture between Hong Kong-based Samena Capital and
Geneva-based Reyl & Cie is winding down $74 million seeding
vehicle. Plans to raise capital for a new one, with focus on
managers who invest in Asia, but has made little progress. In
2013, exited position in Chicago-based Phalanx Capital.
Satori Alpha
Fort Worth, Texas
James Haddaway
[email protected]
817-200-7805, ext. 62
Emerging
No
Affiliate of Dallas-based private equity shop Satori Capital.
Targets acceleration-capital deals with aim of taking 25% cut
of managers’ revenues. Did first deal in 2013, investing $18
million in Crawford Asset Management. Has since closed three
other deals, including a $20 million investment in Chinafocused Yulan Capital. Satori made those investments via a
non-discretionary pledge fund, but is now looking for
committed capital to do more deals.
SEB
Stockholm
Eric Hoh
[email protected]
468-506-23161
Startup,
Established
Yes
Swedish bank’s alternatives unit has seeded hedge fund shops
for a decade, and currently has investments in about 20 firms.
Takes equity stakes or enters revenue-sharing deals with both
startups and established managers pursuing liquid trading
strategies. Currently is looking to deploy proprietary capital to
the tune of $10 million to $20 million per deal, not including
contributions from co-investors. Last commingled seeding fund
was the $300 million Manager Catalyst Fund 2, which is fully
deployed. May seek to launch another fund.
Stride Capital
Stamford, Conn.
Don Rogers
[email protected]
203-569-8920
Startup,
Emerging
Yes
Inked first seeding deal in 2012, investing $50 million with LRV
Capital. Deployed second slug to Barnstar Funds, headed by a
former Fairholme Capital executive. Latest deal was a $40
million investment in Eric Singer’s Vertex Capital. Looking to
deploy $25 million to $50 million per deal in unusual strategies.
Invests via a commingled fund, supplemented by co-investors.
Rogers was formerly a partner at SkyBridge Capital.
Tiger Management
New York
Fraser Seitel
[email protected]
201-784-8880
Startup,
Emerging
Yes
Seeding legend currently has investments with 37 fund
operators running a combined $28 billion. Recent deals include
backing Kang Global, MPA Asia, Palkon Capital, Tiger Pacific
Capital and YG Partners. Launched Tiger Accelerator Fund in
2011 with $450 million deployed to six Tiger seeds. That fund
represents the first outside capital accepted by Julian
Robertson’s firm in more than a decade. Tiger is led by
Robertson’s son Alex Robertson and Gil Caffray, who cofounded FrontPoint Partners.
Wolver Hill Asset
Management
Tokyo
Ed Rogers
[email protected]
81-34-520-5580
Startup,
Emerging
Yes
Led by former Deutsche Bank prime-brokerage executive Ed
Rogers, who also advises fund-of-funds manager Rogers
Investment. Aims to invest about $5 million per deal in small
funds in Asia. Deals include Changjiang Absolute Return China
Fund and Black Crane Capital.
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10/01/14