Investcorp plants seeds with two emerging managers

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Getting startup capital from institutions looks better these days, especially if the economic arrangement is favorable

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