Hermes BPK Partners, the hedge fund division of Hermes Fund Managers, and private equity firm Northern Lights Capital Group launched a fund to invest in small and early stage hedge funds.
The Accelerator Fund, which initially will have about $250 million in assets, also made its first investment in Taurasi Capital Management, a fundamental long/short hedge fund manager based in New York.
“The commercial viability of the strategy is important to us, as we're looking for meaningful incremental returns (from investments in the underlying funds) as well as a share of the top-line revenues” from the growth of the business itself, said Mark Barker, Hermes BPK's founding partner and co-chief investment officer. Hermes BPK is targeting annualized returns of between 8% and 12% net of fees.
Financial terms were not disclosed in the Taurasi transaction, and Mr. Barker declined to name the investors in the fund. Hermes is owned by the £38 billion ($57 billion) BT Pension Scheme, London.