Investcorp Considers Seeding Hedge Fund Saplings

May 21 2010 | 11:23am ET

With mid-sized hedge funds finding fundraising a tough go lately, one prominent hedge fund investor may soon be seeding saplings.

Investcorp is already active in seeding new and emerging hedge funds. But the firm is now looking at funds that already have as much as US$500 million in assets, considering what would be, in effect, a second seeding.

“We’re getting approached by funds running $400 million to $500 million, saying, ‘We need to go the next level and we need a partner like Investcorp,’” Deepak Gurnani, head of hedge funds at Investcorp, told Reuters.

“It’s something that we’re seriously looking at,” Gurnani added. “We’d love to work with these funds.”

According to Gurnani, such funds are “languishing,” but an investment from a firm like Investcorp could both reassure existing investors and give a firm the visibility and stability to attract new institutional investors.

As with traditional seeding, Investcorp, which has yet to re-seed a mid-sized manager, would take a portion of its revenues in addition to investing in its fund.


In Depth

FINalternatives Survey: We Asked Investment Pros...

Apr 2 2016 | 9:42pm ET

The data from our annual reader survey continues to roll in and provide interesting...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...