Sample Transactions

Representative Transaction – Emerging Manager Seed Deal

Ashton Global Emerging Manager

Representative Portfolio Manager

Start-up manager with two-year track record of investing in public equities. The manager has $500,000 of friends and family money under management at a retail brokerage. Manager is looking to launch a hedge fund and raise institutional capital without having to manage the fund launch and on-going back office functions. Manager does not currently have experience speaking with institutional investors. 

Ashton Global Investment Process

Representative Seed Investor

Mid-size family office based in New York looking for niche strategies and active management. Investor uses the Ashton Global platform to deploy capital and diversify the family office portfolio, without having to add headcount directly. Investor also seeks to benefit from the alpha generated from newer and smaller hedge funds.

Sample Term Sheet

  • Seed Investor would provide a minimum $3 million in funding to the new LP in exchange for 45% of the GP/Investment Manager (will add additional capital to get to $4 million – $6 million over time)
  • Portfolio Manager would receive 55% ownership interest in a newly-formed fund
  • Capacity rights for Seed Investor to add up to another $3 million (total of $6 million) at any time
  • Percentage interest for Seed Investor would only be kept so long as we do not redeem below $3 million, this provides for semi-permanent capital
  • Seed Investor would agree to a three-year minimum lockup on the initial fund stake
  • The GP/Investment manager could expense normal costs but not salaries to management
  • Seed Investor will cover certain fund level expenses if above a certain threshold when ramping up to maximize fund return
  • LP charges 0.50% management fee and 20% incentive with no hurdle (Seed Investor would pay full fees on LP capital)
  • Seed Investor would pay for all organizational setup (primarily legal, regulatory)
  • Seed Investor would help with brokerage setup, market access, accounting, admin, legal, and service providers
  • Portfolio Manager would need to contribute personal portfolio into the fund and certify that all investing be done through the fund
  • Help on marketing, client intros, references

Ashton Global Emerging Managers

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