Paris-based asset manager Melanion Capital is launching a hedge fund incubation service aimed at “niche strategies”, the firm has announced.
Melanion is looking to hire managers to work under the group’s AIFM and offering seeding of up to $10m.
Managers will be offered a dedicated fund or managed account for two years, before their strategies are opened to investment from Melanion’s client base.
The firm said its seeding program derives from its own experience as the first alternative manager to invest in dividend futures on the Eurex exchange and from its knowledge of working with institutional investors.
“Our experience suggests that many talented managers feel unable to fulfil their true potential because of the high entry costs of going independent,” said Jad Comair, founder and CEO of Melanion.
He added the firm was seeking “exceptional managers focused on niche strategies” that have strong performance potential, but which will appeal more to high net-worth investors rather than institutions due to scalability issues.
“We faced these same issues when Melanion launched in 2013 and were obliged to stretch our limited financial resources to take our first steps. Today, however, we have capital available and are looking to develop the business by partnering with some of the stars of the future.”
Former Société Générale equity derivatives pro Comair founded Melanion Capital in 2012 after around a decade at the French investment bank.
Melanion Capital declined to comment on its AuM and the full amount of capital it had available for potential seeding.
Melanion Capital launches HF incubator on HFM InvestHedge.