Globally, 78 leading investors who provide day-one capital to hedge fund managers or early-stage investment within the first year of a fund’s existence allocated $12.4 billon to managers from 2009 through 2011, according to a survey from Citi Prime Finance.
The average ticket size for day-one investors was $16 million, compared to $37.7 million for established managers. The Citi survey findings show that 75% of global investors surveyed approach hedge funds opportunistically, evaluating emerging managers alongside more established funds.
The environment for hedge fund start-ups is still rocky. Respondents risked significantly less money on new funds than with