Gottex Fund Management has set up a joint venture to seed Asian hedge funds.
The Swiss fund of hedge funds shop has joined forces with Hong Kong-based Headland Strategic. The new effort will begin seeding hedge funds next year.
Gottex and Headland, along with Value Partners co-founder V-Nee Yeh, will offer up to US$75 million to each hedge fund it backs, in an effort to have each debut with at least US$100 million. The commitment is large for Asia, where seed investments are typically around US$25 million.
The joint-venture will seed two or three new funds each year.
"The aim is for Headland Strategic to make fairly large day-one investments," Gottex co-founder Max Gottschalk told Reuters. "We want to help each fund launch with a minimum of US$100 million, a critical amount of capital for hedge funds to survive and grow in Asia."
Headland is lead by Blackstone Group veteran Michael Garrow and Goldman Sachs veteran Johannes Kaps.