Representative Seed Deal
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 20% to 30% in the newly-formed asset management venture.
The average size seed transaction ranges from $5 million to $10 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 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.
How long does it take to close a seed capital transaction?
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.
For more information about our application process to become a capital provider or an emerging manager, please contact us today.