Skybridge continues seeding growth

Date: Monday, April 26, 2010
Author: Hedge Funds Review

Investment company SkyBridge Capital launched its third hedge fund seeding fund in the wake of its recent acquisition of Citi Alternative Investments’ (CAI) fund of hedge funds, hedge fund seeding and hedge fund advisory businesses. The company has also opened a Zurich office.

The Zurich branch, incorporated as a subsidiary of the US parent company, will enable SkyBridge to build closer relationships with European investors.

Thomas Gallagher, chair of the Swiss arm of SkyBridge, said the company had been considering a European office for some time. Gallagher said it had chosen Zurich due to the city's status as a trading centre and Switzerland's long-standing involvement in hedge funds.

The new SkyBridge fund, SkyBridge Capital III, will be aimed at non-US institutional investors globally. It is structured as a Luxembourg Sicav-Sif (a collective investment scheme for qualifying investors).

Gallagher told Hedge Funds Review SkyBridge had chosen a European regulated vehicle as it seemed to be what investors wanted.

The fund will invest between $25 million and $50 million in 8-12 emerging hedge fund managers over an 18-24 month period. SkyBridge normally seeks managers who have a strong track record, employ low levels of leverage and have a fairly liquid strategy.

Gallagher said even before the opening of the Zurich office he had been "astounded" by the number of enquiries SkyBridge had received from European managers.

Capacity of around $500 million is expceted to be reached towards the end of the year, according to Gallagher.

Minimum investment is $1 million, €1 million, Sfr1 million or the equivalent in other currencies.

SkyBridge is charging a 15% performance fee and a 1.25% management fee for the fund.

SkyBridge's assets under management currently stand at $1.4 billion but this will rocket by around $4.2 billion when the CAI acquisition is completed. The CAI businesses will give SkyBridge a fund of funds footprint as well as making the company one of the world's largest seeding investors.