Hedge Fund Seed Capital Could Reach $5B

Jan 4 2011 | 1:57pm ET

There could be a lot of money available for nascent and start-up hedge funds this year, with available seed capital potentially hitting $5 billion.

Seeders have already raised about $3 billion, Justin Fredericks, head of Americas capital introductions at Bank of America Merrill Lynch, told Hedge Funds Review. "We believe there could be another $1 billion to $2 billion of seed capital raised in 2011," he added.

The Blackstone Group is likely to be among the biggest players, with plans to raise about $1.5 billion. Investcorp, NewAlpha, SkyBridge Capital Partners and Revere Capital Advisors are also expected to be very active.

"The seeding landscape has changed since the financial crisis," Fredericks said. "We have seen some people exit the seeding business, but there have also been a number of new entrants."


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note