Hedge fund seeding managed account platform unveiled

seedling_in_hands_410Deutsche Bank and Financial Risk Management plan to launch a hedge fund seeding managed account platform, the dbalternatives Discovery platform. It will be based on Deutsche Bank’s existing dbalternatives managed account platform, but will extend investor protection afforded by its managed account framework into the hedge fund seeding arena. Developed a decade ago, the platform aims to address hedge fund investor concerns regarding fraud, transparency, liquidity and independent valuation. “The aim of hedge fund seeding is to identify and invest in the funds of select emerging hedge fund managers and to provide strategic guidance to support their development,” a joint statement says. “In return for committed capital, seeding investors receive fund returns and a share of the manager’s revenue. The latter represents an attractive way to benefit from any growth of the hedge fund manager’s assets under management.” Financial Risk Management says it will select and negotiate strategic investments in emerging managers, which will be made through managed accounts on the dbalternatives Discovery platform. Deutsche Bank says it will also raise capital for a seeding fund, which will invest in early stage hedge funds. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.