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

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.