Sovereigns Seeding Managers
In the wake of the financial crisis, institutional investors have been rethinking the way they access markets. Frustrated with an obvious misalignment of interests and seemingly extravagant fees, the world’s biggest investors are increasingly looking to deploy assets in new and innovative ways. Readers of this blog are no doubt aware of the trend to move assets in-house, but there are other strategies to take note of as well. For example, some funds are trying to re-structure and change the nature of their external mandates, hoping to reduce fees or refocus external managers to prioritize their long-term interests. One such strategy that is increasingly popular is ‘seeding managers’.
November 7, 2011