Northern Lights Capital and Hermes BPK Launch New Venture
September 6, 2011 (PLANSPONSOR.com) – Northern Lights Capital Group, LLC and UK-based Hermes BPK Partners LLP are to join forces with the intention to launch a new investment platform designed to identify and provide access to early stage hedge fund managers for global institutional investors and pension funds.
The agreement will bring together Northern Lights’ ability to identify and support asset managers with Hermes BPK’s expertise in the alternative investing and fund of hedge funds marketplace, a press release said.
The joint venture will provide an investing framework, which incorporates operations, risk management, strong governance, and transparency required by institutional investors. The partners will invest “acceleration capital” to hedge fund managers early in their growth cycle or seed capital into new hedge funds, and seek to capture the return premium associated with investing in talented, early state fund managers, while also participating in the economics of the growth of the management firms. The partnership will provide strategic resources to hedge funds, including sales and marketing.
The venture will also bring together a set of capabilities including experience in sourcing and selecting investment teams, identifying the evaluating drivers of risk, actively engaging with managers to ensure operational efficiency, and facilitating growth through marketing and distribution services.