Fund of hedge funds firm Gottex Fund Management is teaming up with Headland Strategic to provide seed capital to Asian hedge fund managers.
Switzerland-based Gottex announced Tuesday that the joint venture with Headland, founded by ex-Blackstone executive Michael Garrow and former Goldman Sachs employee Johannes Kaps, will allow the two companies to allocate as much as $75 million to each hedge fund manager to help build a start-up capital of at least $100 million. A typical seed investment in Asia has been about $25 million in recent years.
Gottex and Headland, which plan to back two to three managers per year, will begin seeding funds in the first quarter of 2014. The partnership has also attracted investors, such as a Hong Kong-based Value Partners V-Nee Yeh, to commit cornerstone capital to Headland.
Gottex has $5.94 billion in assets under management as of June. Based in Hong Kong, Headland is an institutional investment firm.