Launches & Closures

Appetite for seeding growing among investors, says Preqin survey


The number of hedge fund investors expressing an interest in making seed investments has almost doubled, according to the latest survey by Preqin ¬– from 11% in 2009 to 21% in 2010.

According to Preqin, investors believe the benefits of investing in hedge funds – including fund ownership, fee negotiations and early access – far outweigh any disadvantages in the current climate.

Seed investments are also evolving since the financial crisis, with seed capital going to established vehicles that have hit fund-raising difficulties or suffered redemptions as well as to the more traditional start-ups.

The survey also found that