Sowing the seeds for future growth

First time hedge fund managers face a wide range of financing choices from seed capital providers and incubator programmes to conventional investors who want to negotiate terms. What are the differences between them and what are the pros and cons? Hedge Funds Review investigates¦

Seed capital providers invest initial capital in hedge funds, often new or recent entrants to the industry. These allocations may form part of the capital providers own fund of fund business. In return for being an early investor, the seed capital provider may negotiate a combination of reduced fees on their allocation, guaranteed future capacity, and/or participation in the revenue of the fund management company, sometimes as an equity stake with a place on the board of directors.

Capital Z

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