Getting startup capital from institutions looks better
these days, especially if the economic arrangement is
By Barry Cohen
The addition of two new single-manager hedge funds
to the platform of $13 billion alternative investment firm
Investcorp provides more evidence that emerging managers are
considering more closely the once-scorned notion of finding an
institutional seeding partner.
Until recently, hedge funds that had been seeded by
institutions were often viewed as lacking in entrepreneurship.
Investors were also concerned that the seeding firm might have
an advantage, by having superior access to capacity and
information. That attitude is changing. "People now realize
that the backing of a good seeding organization, which could
have many options to provide capital to other managers, can be
regarded as a feather in the cap for the startup manager," says
Dan Lancellotti, managing director of capital introductions at
Investcorp, with main offices in New York, London...