Asset Alliance Advisors is for the first time allowing outside investors access to its emerging managers programme through the launch of a new fund, HFMWeek has learned.
In a letter to potential investors, the firm said it wants to raise $250m to launch the Asset Alliance Manager Participation Fund, which will debut this year.
“As the industry rebuilds and we enter a new period of hedge fund expansion, we see an unparalleled opportunity to generate value by providing strategic growth capital to emerging managers,” the letter stated.
With the debut of this fund, investors will receive revenue sharing interests and the investment return achieved by the manager’s funds.
The fund will have a $2.5m investment minimum, a 1.5% management fee, a 0% incentive fee on investment income and 15% carry only on participation interest. It has a capital commitment through 31 December 2014 and 120 days’ notice if investors want to withdraw money prior to that date