Incubation pioneer IMQubator aims to fix 'broken' investment management model
Jeroen Tielman (pictured), CEO and Founder of IMQubator (IMQ), says that the existing investment management model is broken, and he is determined to take complaints from hedge fund investors in the wake of the crisis to heart, by demanding the structure and governance of the funds IMQ incubates to be better aligned with the long term interests of investors.
Tielman believes it is time for a new generation of hedge funds – as well as for hedge fund seeders - that can deliver transparency and a consistent investment strategy delivering absolute returns and not fall foul of industry ‘bad habits’.
Capitalised in January 2009 with EUR250mm from APG, the asset manager for Dutch pensions giant Stichting Pensioenfonds ABP, Amsterdam-based IMQ is leading the way for a new generation of investment managers.
Established by Jeroen Tielman, now a 25-year veteran of the global institutional industry, IMQ offers an institutional platform where professional investors can gain exposure to emerging managers through the IMQubator multi-manager fund.
IMQ has pioneered the process of ‘incubation’, which requires each and every one of the fund managers backed by IMQ to relocate to the firm’s Amsterdam base. They not only share a headquarters, but the same floor. Portfolio managers bump into one another in the corridor and converse over coffee. Advice, support, guidance and, not least, close monitoring, are all at hand. This is a greatly enhanced role in comparison with the standard seeding model performed by more run-of-the-mill competitors.
IMQ has backed its eighth fund (enclosed are more details), IStar Systematic, with EUR25m of incubation capital. The fund is run by Rudolph Shally and Thomas Artarit, who previously worked together at AIG Financial Products in Tokyo and London.
IMQ has also announced that it - with the endorsement of APG - will raise up to €100 million in fresh capital for the IMQ Fund. The new capital will be used mainly to provide acceleration capital to funds seeded by IMQ. The terms for IMQ investors are designed to be exceptionally attractive; with the purpose of creating an opportunity for them to become potential long-term partners in future offerings. As well as an equity co-investment, investors will be offered a seat on the investment committee, further aligning the interests of the end-investor.
Tielman says: “IMQubator aims to deliver the emerging manager premium, while providing investors with more power to demand transparency and better alignment in a crisis situation. IMQ is the most cost efficient incubator, offering investors a diversified multi-strategy platform within single manager total fees.
We are in partnership with our clients, with our own savings invested alongside those of our clients. We are seeking to generate absolute returns whilst minimising risk, because this is what our clients want. There has not been enough transparency in the hedge fund management industry, on costs, on performance or investment processes. IMQ will offer full transparency to clients and full accountability.”
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