How long does the seeding process take at Ashton Global?
Depending on the strategy, a manager can receive a preliminary term sheet within a month after contacting us. A seed capital transaction can typically be closed in less than 90 days after receiving an offer from one or more of our capital providers, assuming standard legal documentation and fund structures. The normal timeframe for executing a seed capital transaction can range between four and 12 months.
Who are the seed capital providers on the platform?
Seed capital providers on our platform include family offices, foundations, hedge funds, fund of funds, and global banks.
What does the manager due diligence process consist of?
The due diligence process consists of three phases. The first phase of due diligence is with Ashton Global, with the subsequent two phases being directly with the potential seed capital provider.
If matched with a capital provider, the manager's focus should be on communicating a sustainable investment process, a strong track record, and being able to show that the portfolio is not overvalued.
Can overseas-based funds apply for seed capital?
Yes, but having a US-based account or fund increases the probability of receiving seed capital. We do not work with managers that are based in offshore tax havens.
Do you work with forex, cryptocurrency, or blockchain managers?
No, we do not provide seed capital for forex, blockchain, or cryptocurrency strategies.
Will you sign an NDA?
No, we won't sign an NDA. We have a commitment to secrecy with our managers during the due diligence process. We are looking to help managers, not to steal trades.
What is the average size seed investment?
The average size seed transaction ranges from $5 million to $25 million. The seed investment can be structured as a one-time initial investment into a commingled fund or as a separately-managed account. Seed investments can also include a credit line that can be accessed on a transaction or deal basis.
How long is the capital committed for?
Generally, our transactions are permanent capital for the emerging manager. In exchange for a seed investment, the capital provider will receive a discounted management fee and a minority interest in the management company or general partner.
Which types of equity strategies are likely to get seed capital investment?
Small-cap and micro-cap strategies, value investing, and special situations (event-driven, merger arb) are likely to have high interest from our seed capital providers. Portfolios with low P/E ratios are also much easier to underwrite for the seed investor. Concentrated portfolios with less than ten holdings also attract lots of investor interest.
Which types of credit strategies are likely to get seed capital investment?
Niche bond strategies where the manager has unique expertise into the market structure are always like to advance to discussions with capital providers. In addition, an emerging manager with an edge in an inefficient segment of the market like EM, high-yield, municipal bonds, or distressed debt.
Will you invest in multiple managers running similar strategies?
No, we only work with a single manager in each of our strategies. Managers will never have to compete for our in-house resources after securing an investment.
How can I apply for seed capital from Ashton Global?
The process starts by applying via our online portal. Candidates generally receive a response within two to five business days and are asked to schedule an initial call.