Deutsche Bank will partner with hedge fund research and investment specialist Financial Risk Management to launch what they're billing as the industry’s first hedge fund seeding managed account platform.
FRM, through its hedge fund seeding division FRM Capital Advisors, will select and negotiate strategic investments in emerging managers. Investments will be made through managed accounts on the dbalternatives Discovery platform, based on the Deutsche Bank managed account platform established in 2002.
Deutsche Bank will also raise capital for a seeding fund which will invest in early stage hedge funds selected by FCA, which evaluates over 500 seeding opportunities annually.
Deutsche Bank’s global head of fund derivatives, Stephane Farouze said: “dbalternatives Discovery is set to reinvent hedge fund seeding through the introduction of managed accounts, which we believe are crucial when investing in emerging managers. Whatever the pedigree of the manager, it’s in these early stages that close monitoring of risk and style drift are most essential. The dbalternatives Discovery platform will provide this through the tried and tested managed account infrastructure we have been offering to investors for the last 10 years. We are pleased to be partnering with FRM in this important new business.”
dbalternatives is Deutsche Bank’s integrated hedge fund offering with $12 billion of assets under management including managed accounts, hedge fund UCITS and ETF offerings. FRM has about $9 billion in AUM.