Capital concerns lay seeds for incubators

Sat Oct 1, 2005

But there's more of them, so terms are getting better

The flow of assets into new hedge funds is on the increase, and more and more innovative - and even esoteric - strategies are popping up all over the industry. But emerging managers are paradoxically finding it harder than ever to raise money. If you don't have the pedigree and track record of a William von Mueffling or an Eric Mindich, it's a struggle. "This is the most difficult environment for raising capital that I have ever seen," says Bob Leonard, head of global capital introductions at Credit Suisse First Boston.

As a result, many new funds are looking at incubators for seed capital - despite past complaints regarding the tough terms they demand. Regulatory changes and disillusionment with prime brokers' capital introduction services are also sending fledgling managers into the arms of incubators. On the flip side, there's a proliferation of...

ISSN: 2151-1845 / CDC10004H

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