The platform, called dbalternatives Discovery platform, is based on Deutsche Bank’s dbalternatives managed account platform, expanding its reach into the process of seeding new funds.
FRM, through its hedge fund seeding division FRM Capital Advisors, will select and negotiate strategic investments in emerging managers which will be made through managed accounts on the dbalternatives Discovery platform.
Deutsche Bank will also raise capital for a seeding fund which will invest in early stage hedge funds selected by FCA.
Deutsche Bank global head of Fund Derivatives Stephane Farouze said that dbalternatives Discovery is set to reinvent hedge fund seeding through the introduction of managed accounts, which they believe are crucial when investing in emerging managers. Whatever the pedigree of the manager, it’s in these early stages that close monitoring of risk and style drift are most essential.
