20 Apr 2010
SkyBridge Capital, the alternative investment firm that acquired the fund of funds, seeding and hedge fund advisory businesses from Citi Alternative Investments is looking to raise $500 million to launch a seeding arm in conjunction with its opening of a new office in Zürich.
SkyBridge Capital AG is incorporated as a subsidiary of parent company SkyBridge Capital, a leader in hedge fund incubation. Opening in Zürich reinforces the emerging trend of global financial institutions having a presence in Switzerland. With the acquisition of CAI, SkyBridge has $5.6 billion in assets under management.
The European arm will build on the firm’s strong position in the US and existing partnership with Challenger, an Australian financial services organization AUM of $43 billion, which supports SkyBridge in new markets in Australasia, Europe and Japan.
The strategic decision to build its international presence from Europe comes at a time where a confluence of economic and industry factors enhances the attractiveness of investing in emerging hedge funds. Volatility and scarcity of capital means that seasoned, successful portfolio managers from established hedge funds and banks are increasingly setting out on their own.
To take advantage of these opportunities, SkyBridge Capital is launching a Luxembourg SICAV-SIF, SkyBridge Capital III, for European, Middle Eastern, Asian, Australian, and Latin American investors. The overall target fund size is $500 million with an anticipated initial close towards the end of 2010.
SkyBridge Capital currently has strategic investments in seven funds. Unlike a hedge fund of funds which provides only one source of revenue, SkyBridge Capital adds value to investors through its funds by offering three sources of potential returns from seeded managers: performance, ownership stake, and potential sale of underlying managers.
SkyBridge Capital III is aiming to invest between $25-50 million in some 8-12 managers over the next 18 to 24 months. SkyBridge believes the seeding fund adds value for investors by offering three sources of potential returns: return on performance of invested capital, share of manager’s aggregate revenue and the potential sale of underlying, seeded managers.
SkyBridge Capital AG is incorporated as a subsidiary of parent company SkyBridge Capital, a leader in hedge fund incubation. Opening in Zürich reinforces the emerging trend of global financial institutions having a presence in Switzerland. With the acquisition of CAI, SkyBridge has $5.6 billion in assets under management.
“There is strong market demand in Europe for our activities, boosted by the agreement to acquire CAI, and Zürich represents an ideal location,” said Thomas John Gallagher, chairman of the European business. “It offers a perfect combination of large numbers of high net worth individuals, family offices, private banks and institutions providing new capital for seeding hedge funds together with a base to source talented emerging hedge fund managers.”
The European arm will build on the firm’s strong position in the US and existing partnership with Challenger, an Australian financial services organization AUM of $43 billion, which supports SkyBridge in new markets in Australasia, Europe and Japan.
The strategic decision to build its international presence from Europe comes at a time where a confluence of economic and industry factors enhances the attractiveness of investing in emerging hedge funds. Volatility and scarcity of capital means that seasoned, successful portfolio managers from established hedge funds and banks are increasingly setting out on their own.
To take advantage of these opportunities, SkyBridge Capital is launching a Luxembourg SICAV-SIF, SkyBridge Capital III, for European, Middle Eastern, Asian, Australian, and Latin American investors. The overall target fund size is $500 million with an anticipated initial close towards the end of 2010.
SkyBridge Capital currently has strategic investments in seven funds. Unlike a hedge fund of funds which provides only one source of revenue, SkyBridge Capital adds value to investors through its funds by offering three sources of potential returns from seeded managers: performance, ownership stake, and potential sale of underlying managers.
SkyBridge Capital III is aiming to invest between $25-50 million in some 8-12 managers over the next 18 to 24 months. SkyBridge believes the seeding fund adds value for investors by offering three sources of potential returns: return on performance of invested capital, share of manager’s aggregate revenue and the potential sale of underlying, seeded managers.
“We are seeing a major interest in such funds from investors in Europe and elsewhere outside the US, and that’s why we recently opened our international office in Zürich which is the base for the launch of our new fund,” said Gallagher.
