Investment
Philosophy
Philosophy
Ashton Global is dedicated to empowering emerging fund managers by providing the essential seed capital they need to succeed. Our commitment to fostering innovation and growth in the investment industry has made us the go-to capital provider for fund managers.
A primary focus on ethics and fiduciary responsibility
World-class legal team and service providers to ensure a fully transparent investment process
Generous terms that provide a "win-win" for all parties
Rigorous support and mentoring for the manager
Portfolio monitoring and frequent communications with investors
Diligent focus on compliance in global markets
Strong relationships with regulators
Emerging managers must provide investment opportunities that are clearly differentiated from well-established funds. Managers must also pursue profitable niches, new technologies, and financial arrangements that are not accessible in public markets.
Establishing the proper incentives ensures that team members work toward achieving the emerging manager's stated goals and avoid conflicts of interest. We expect managers to commit more than 10% of the total capital in the seed capital transaction. The money invested should be in cash rather than deferred compensation and amount to a substantial portion of the emerging manager's net worth.
Key Partnerships and Manager Development
Proven Process of Manager Success
New hedge fund managers need to be committed to the fund’s success and have skin in the game. The necessity for an emerging manager to get to critical mass quickly (roughly $80 million to $100 million of AUM) provides a huge incentive to generate alpha while protecting against drawdowns.
A global network of contacts across a variety of disciplines enables us to source undiscovered investment managers that we believe will generate sustainable alpha over time. Our capital providers benefit from the historical outperformance of start-up managers, and by gaining access to niche strategies with capacity constraints.
Our automated fintech portal efficiently matches emerging managers with potential capital providers and streamlines the funding process.
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 of our capital providers.
Gaining access to managers with true alpha is perhaps the most crucial practical problem associated with private equity, but there are other issues as well. Some of the most successful manager strategies do not scale well, so investment opportunities are limited.
Our core mission is to identify outstanding emerging managers, which involves significantly more groundwork than choosing among existing funds. One of the reasons for investing in emerging managers is that their returns tend to be higher in the first few years.
Strategies for Engaging with Institutional Investors
Having a unique edge and pipeline of interesting investment ideas is crucial for attracting institutional investors.