Anthony Scaramucci, the founder and managing partner of SkyBridge Capital Group, has developed plans to shake up hedge fund seeding. The seeding business, which takes stakes in newly-launched hedge fund managers, has recently taken a hit duringfrom the current economic environment, and according to the Wall Street Journal Mr. Scaramucci claims that it is now very difficult for new managers to succeed. To combat the problem, Mr. Scaramucci, who began seeding start-ups in 2005, has decided to add an element of “permanency” to the capital invested with these new managers to prevent it from being withdrawn before a certain date.
Mr. Scaramucci plans to consolidate SkyBridge Capital’s seeding processes and eventually list the consolidate fund on the New York Stock Exchange, eventually raising $1 billion in permanent capital. With a capital base guaranteed for a certain amount of time, a fund holder would not be able to liquidate the hedge fund in a down cycle before the expiry date. |
