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 is the structure of an average seed transaction at Ashton Global?
The seed capital transactions that we structure will vary. The typical transaction involves a manager with between $500,000 and $2 million of assets, and a track record of at least two years in the strategy being presented.
Our typical seed capital provider would be a mid-sized hedge fund, family office, or fund of funds that would invest as an "anchor", and they would receive a minority interest of 25% to 35% in the newly-formed asset management venture.
The average 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 involve a credit line that can be accessed on a transaction/deal basis.
Generally, the seed investor will be granted "capacity rights" to facilitate subsequent investments to the emerging manager.
The manager receives the benefit of referrals from the anchor investor which helps to grow AUM.
Generally, our transactions are permanent capital for the emerging manager.
In exchange for a seed investment, the capital provider will receive a preferred management fee, and they will receive a minority interest in the management company, along with the emerging manager and Ashton Global.
What benefits does the Manager receive?
Introductions to institutional investors
Factsheets and marketing brochures
Website design consulting
Media coverage through exposure on various channels
Digital marketing via email, call programs, social media, video and print
Speaking opportunities at conferences and events
Targeted outreach to existing financial advisors, family office clients, and fund of funds
If approved, the only cost to the emerging manager is a $10,000 annual fee to be on the platform.
No, there are no other fees to be paid by the manager. Once you receive a seed deal via our platform, Ashton Global LLC would receive a 3% to 5% stake in your newly-formed management company as part of the terms of the seed transaction.
How are the profits split between the emerging manager and the seed capital provider?
Ashton Global insists that the emerging manager retain the majority of the management company profits as a result any seed transaction.
Generally, the fund manager will own 65% to 75% of the management company.
No, the emerging manager will not pay any fees on the manager's holdings in the fund, only on the outside capital raised during and after the seed transaction.
No. Only operating expenses related to the fund will be covered by the seed investor. The manager's compensation will derive from a management fee and an annual performance fee.
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.
The application process starts by sending a presentation, factsheet, and recent quarterly letter (if available) to firstname.lastname@example.org. Applicants generally receive a response within two to five business days and are asked to schedule an initial call.