The FINANCIAL — Deutsche Bank and Financial Risk Management announced a partnership to launch the industry’s first hedge fund seeding managed account platform, according to Deutsche Bank.
The dbalternatives Discovery platform, based on Deutsche Bank’s established and award winning dbalternatives managed account platform, extends the investor protection afforded by its managed account framework into the hedge fund seeding arena. Developed in 2002, the dbalternatives managed account platform addresses 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. 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.
FRM, through its hedge fund seeding division FRM Capital Advisors,will select and negotiate strategic investments in emerging managers which will be made through managed accounts on the dbalternatives Discovery platform. Deutsche Bank will also raise capital for a seeding fund which will invest in early stage hedge funds selected by FCA, which evaluates over 500 seeding opportunities annually through FRM’s global investment team.
Investors can therefore now utilise a high quality managed account platform to invest in a seeding fund or to invest directly into emerging hedge funds. dbalternatives, Deutsche Bank’s integrated hedge fund offering with $12bn of assets under management including managed accounts, hedge fund UCITS and ETF offerings, provides investors with unified direct access to Deutsche Bank’s hedge fund products.