The creation of the long-anticipated French national seeding fund, Emergence, was first announced last July by the French asset management association (AFG) but it has taken months to bring the project to fruition.
NewAlpha’s mission will be to select young asset management companies to help them reach critical mass by acquiring institutional references which will facilitate their development.
SGSS will provide the reporting necessary to highlight these companies’ management capabilities for investors.
There is rising competition between seeding funds as new competitors enter the fray. Jeroen Tielman’s IMQubator in Holland and Antoine Rolland’s NewAlpha are taking on multi-billion long-established players including BlackStone and SkyBridge Capital.
There is keen institutional interest in seed funds as they provide access to emerging managers which are often too small to make direct allocations to.
NewAlpha was created in 2003 and is today a fully-owned subsidiary of OFI Group, which has €47.2bn in assets under management.