December 20, 2011

The Evolution of Seed Capital Arrangements in the Hedge Fund Industry

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The seeding industry provides early-stage capital to a new hedge fund manager in exchange for a stake in the manager’s venture. Recently, a combination of market conditions and business constraints has made seeding arrangements more significant. In this short video interview, corporate partner Udi Grofman examines:

• Factors affecting the seed market
• Changes to the traditional seeding model
• Elements of strong seeding arrangements
• Alternatives for new managers trying to launch