Cantor Makes Initial Plans For Seeding Fund

Feb 15 2012 | 1:17pm ET

Cantor Fitzgerald is continuing its expansion into hedge funds with plans for a seeding fund.

Cantor, which last announced plans to buy its way into the industry and then made good on that promise with the acquisition of Cadogan Management, is to begin the second phase of its hedge fund strategy with the seeding fund. The New York-based investment bank hopes to raise as much as $1.25 billion for the vehicle, Dow Jones Newswires reports.

The firm's first seeding vehicle would provide between $25 million and $50 million to between 20 and 25 emerging hedge fund managers. Cantor is seeking to recruit an executive to run its seeding business, the details of which—including the amount to be raised—remain in flux.

"The launch of a seeder fund will tie in well with our prime brokerage business which caters to $50 million to $1 billion funds," CEO Shawn Matthews told DJ. "Since we're actively involved in hedge funds, we have a unique perspective on funds, and knowledge about who's planning to launch this year."


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...