Hedge fund seeder Revere Capital Advisors is looking east. The New York-based firm, which last year opened an office in Singapore, plans to begin seeding Asian hedge funds in the near future, aiming to capitalize on the growth of both the region and its hedge fund industry.
"In Asia, the hedge fund scene is fairly immature relative to the U.S. and Europe; you have a lot of startups," Jameel Tawasin, manging director for Asia, told Bloomberg News. He added that he was "inundated" with requests for seed capital from Asian managers, presenting a large number of opportunities.
The begin to cash in on them, Revere has set up a database of Asian managers and plans to begin due diligence on them "when the time is right." The firm plans to start raising money to seed Asian funds "in the not-too-distant future," Tawasin said.
When it does, Revere plans to seek out "liquid, transparent" strategies, offering seed capital of up to US$20 million in return for an option to take as much as a 25% stake in a new hedge fund firm.
"Typically, we look for managers with excellent potential in terms of performance, a scalable business model, tight risk management, strong internal infrastructure and ideally a healthy track record," Tawasin explained.