Eurekahedge, a hedge fund consultant and database provider headquartered in Singapore, and Arlington Group, a London-listed investment company, have announced a partnership to seed and support Asian hedge funds. Arlington will commit seed capital to the underlying funds while Eurkeahedge will provide origination, analytical support and capital introduction to the invested funds.
Richard Armstrong, one of Eurekahedge's founding partners and Joseph McCarthy, Arlington's Asia-focused investment manager based in Singapore, will jointly be responsible for managing and developing the seeding platform.
"This marks an exciting step in the development of Arlington Group and its target of expanding its interests in Asia," commented Nicholas Barham, chairman of Arlington Group. "We believe that in Eurekahedge we have found a unique partner with a demonstrable depth of understanding and knowledge of Asian funds and a proven track record in helping to support and raise capital for start-up funds".
Arlington, a London-based investment company listed on the Alternative Investment Exchange, started its life investing in structured private equity transactions in Europe and the United States. For the last 18 months the group has been investing in Asia through an internal Asian fund of hedge funds. The new seeding platform is part of Arlington's initiative to further its expansion into the Asian region.
McCarthy was unable to specify the amount of seed capital Arlington would commit to individual funds, but says the investment would be significant and would get the hedge funds onto the radar screens of larger institutional investors. He noted that deals would vary on a case-by-base basis and may involve Arlington taking a stake in the underlying hedge fund company.
"We're experienced investors in the sector backed by a cash rich balance sheet, and an ability to execute quickly when we have found the right partner," says McCarthy. "There are three critical elements we are looking for in the Asian hedge funds we invest in, strong experience, discipline and a passion for what they do."
McCarthy points out that the joint venture with Eurekahedge means that Arlington will be able to provide the hedge funds it seeds with a full partnership, which includes not only capital, but business support and capital introduction.
Commenting on the partnership, Eurekahedge's Richard Armstrong says, "Early-stage capital is key to helping funds to develop. The joint venture with Arlington Group complements our existing services in start-up advisory, capital raising and the hedge fund hotel. We are now able to provide the complete platform for funds to set up and grow."