Seeder FRM Goes Into Overdrive

May 14 2009 | 10:35am ET

Hedge fund seeding firm FRM Capital Advisors plans to capitalize on the dire straits many hedge funds find themselves in with an infusion of up to $300 million.

FRM, a subsidiary of Financial Risk Management, plans to invest in as many as six managers this year, including its first in Asia, Bloomberg News reports. Two deals are expected to close next month, with the Asia investment coming in the third quarter.

“The pricing of deals has improved in favor of the seeders,” Patric de Gentile-Williams, chief operating officer of FRM, told Bloomberg. “You really get your complete choice of deals. We’re seeing lots and lots of very talented people.”

De Gentile-Williams said seeders can get 1% of a hedge fund firm’s fee income in exchange for “well below” $2 million. Just three years ago, it took almost $4 million.

FRM’s investments this year will be between $20 million and $100 million apiece, de Gentile-Williams said.


In Depth

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of