Seeding is as original investment solution, enabling qualified investors to take part in the launch or the acceleration of early stage managers, and to benefit from a double source of return: the performance of the seeded funds during the investment period and a share of their income that span beyond the actual seeding period. This second source of return is perceived through an income sharing scheme or a minority equity participation in the equity of the seeded firm.
This source of return constitutes an excellent diversification option, giving access to strategies that are usually out of institutional investor’s reach.
Thanks to its expertise in selecting and monitoring early stage managers, and its experience in the structuring of seeding partnerships, NewAlpha offers bespoke investment solutions that are particularly compelling for qualified investors.
Seeding requires an investment horizon that is sufficiently long to enable the seeded firm to build a track-record and to develop its activity, usually 3 to 5 years.
Emerging Managers funds of funds offers institutional investors with shorter investment horizons access to ‘early stage’ managers, whose investments are attractive due to their innovative, diverse and performance potential.
Thanks to its resources and to the experience it has acquired through the seeding of early stage managers, NewAlpha launches an Emerging Managers fund of funds, accessible to all types of professional investors.
Seeding ‘Emerging Managers’ or investing in venture capital during the first stages of development of an innovative firm enables the alignment of each party’s interests, and creates a long lasting and mutually beneficial cooperation for both innovative entrepreneurs and qualified investors.
Experience shows that risk management is the cornerstone of performance. Since inception, NewAlpha has engaged in an active monitoring of risks by creating several levels of risk management through the setting up of specialised skills providing precise analysis methods and performance monitoring.