HedgeCo Networks, a hedge fund data firm and provider of consulting and marketing services to the sector, has received its first major outside investment from Inter-Atlantic Group, a priva
HedgeCo Networks, a hedge fund data firm and provider of consulting and marketing services to the sector, has received its first major outside investment from Inter-Atlantic Group, a private equity firm specialising in the financial services industry.
HedgeCo says it plans to use the capital injection to expand business operations at its New York and West Palm Beach offices and to expand its service offering to new areas of the hedge fund industry.
‘We are extremely excited that Inter-Atlantic has taken an interest in us, and are eager to take HedgeCo to the next level,’ says the firm’s managing partner and co-founder Evan Rapoport. ‘The vote of confidence that they’ve instilled in us further fuels our drive to be the leading name in the hedge fund service industry.’
Inter-Atlantic invests in small to mid-size companies chosen after a careful evaluation and determination of potential growth and market reach. ‘Inter-Atlantic believes the hedge fund industry is a high-growth sector with tremendous potential,’ says managing partner Andrew Lerner.
‘Rather than investing in a hedge fund itself, Inter-Atlantic chose to invest in one of the premier service providers to hedge funds. We like HedgeCo’s international reach, position as a top-tier portal and recurring fee revenue model.’
HedgeCo Networks manages HedgeCo.Net, a hedge fund database and information portal, and nine other web sites devoted to alternative investments, and offers services including hedge fund web site design, consultancy, third-party marketing and seeding. Founded in 2001 by Rapoport and Andrew Schneider, the company says it has advised or helped to launch more than 500 onshore and offshore hedge funds.
Inter-Atlantic Group invests in financial services sub-sectors including financial technology, banking, insurance, asset management and service providers to the industry, making investments that typically range from USD3m to USD10m and focusing principally on opportunities in the US and Bermuda.
