Monday, 8 February 2016
Last updated 2 days ago
Oct 25 2010 | 2:08am ET
The industry's biggest hedge fund seeders have more than $1 billion available to deploy—and plan to quadruple that amount over the next 12 months, according to a new report.
Seven seeding firms are sitting on $1.04 billion, according to HFMWeek research, led by the Blackstone Group, whose Strategic Alliance unit raised $500 million for its second fund earlier this year but hasn't invested a dime. What's more, those seven say they hope to raise another $3 billion for seeding over the next year.
In addition to Blackstone, Larch Lane has $105 million left to seed new talent, FRM Capital Advisors has $150 million, IMQubator has €100 million, SkyBridge Capital Management has $50 million, Sweden's SEB has $50 million and Erste Bank has $45 million.
Those same firms have big fundraising plans to go with their seeding plans. Blackstone and Larch Lane each hope to raise an additional $600 million, while SkyBridge, fresh from its acquisition of three Citigroup hedge fund businesses, hopes to raise $500 million for its next seeding fund.
FCA—"very much in the capital-raising mode," chief operating officer Patric de Gentile-Williams tells HFM—hopes to net a further $160 million. IMQubator is mulling the biggest fundraise of them all, possibly seeking an additional €750 million.
Nor are those firms alone. The Carlyle Group, CYAN Management, Reservoir Capital, Revere Capital and Stride Capital are all also rumored to be considering a fundraising push for seed vehicles.