IMQubator looks to seed Asia
Amsterdam-based IMQubator (IMQ), which seeds new asset management businesses, has signed a deal with Hong Kong-based Synergy Fund Management (SFM) to seek out and seed new managers in the region through a ‘mutual advisorship’.
SFM will source managers, while IMQ will advise on seeding, particularly of hedge fund managers.
Jeroen Tielman (pictured), CEO and Founder of IMQ, said the move was in response to growing expectations of new managers emerging in Asia out of larger asset management firms or proprietary desks.
Tielman also feels that Asian investors are set to start allocating more towards alternatives – an area both he and IMQ know well.
Through seeding, IMQ is able to take an equity slice in what it hopes will become fast growing businesses. IMQ’s long term target is to establish itself as a globally present player. Moving into Asia is a key part of this process, although initially it is likely to focus on Japan, Hong Kong and free trade zones in China. It already has a certain presence in Singapore, Tielman said.
When considering seeding opportunities of alternatives funds, IMQ looks for specialists offering pure strategies – not blends of long/short. Generally alternatives are becoming more popular over time, Tielman said, because institutional investors recognise the skills hedge fund managers have, as well as the advantages particular strategies may bring, such as lower volatility.
Speaking about the deal announced today, Eliza Lau, founder and CIO of SFM said: “We see a broad spectrum of hedge fund strategies with Asian emerging manager candidates. As the China market orderly opening up the alternative investment platform in the coming years, we see greater opportunity and many good talents with strategies in the CTA and commodity trading space given the advanced and highly active commodity exchanges in China.”