Falcon Investment Management a multi-manager hedge fund platform, has launched its first loss program to support early-stage hedge fund managers with seed and acceleration capital.
The program is designed to align interest between investors and managers. Through first loss structure, managers receive higher incentive fees in exchange for sharing potential losses with investors resulting a better alignment of interests. Participating fund managers in the program benefit in three ways.
• Supported by institutional grade operational and risk management framework
• Access to seed and acceleration capital
• Receive significantly higher than industry average performance fee
“As the first hedge fund platform in Europe to offer first loss program, Falcon is uniquely positioned to address the challenges facing early-stage managers to grow AUM and scale,” says Benny Menashe, CEO of Falcon and co-head of the program.
The program is exclusive to selected startup managers who demonstrate a strong potential to deliver high quality alpha and their strategies meet the following criteria.
• Attractive Sharpe ratio
• Low drawdowns
• Systematic or discretionary approach
Managers on the platform are carefully selected through a qualitative and quantitative due-diligence process – Involving the expertise and the track record of managers, assessment of their investment strategy and their approach to risk management.
“Falcon’s eco-system gives institutional investors access to entrepreneurial managers with niche and more innovative strategies. Through this strategic partnership our investors secure attractive source of returns irrespective of any market conditions,” says Menashe.