Monday, July 15, 2024

Hedge fund launch market update: January 2023

  • Preference for strong names with long track records in start-up environment
  • AFI Pro and Executive members have exclusive access to the tracker
  • You can also follow developments by checking our LAUNCHES section

Eight new hedge funds were added to AFI’s tracker of launches in January, with a clear appetite for high-class names.

Their plans defy the difficult landscape facing start-ups, with costs rising, investors wary of day-one commitments and the multi-strategy model tempting talent.

The month started with news that Mala Gaonkar, the former Lone Pine Capital veteran, had started SurgoCap Partners with $1.8bn.

Trading across sectors and focused on how technology can improve companies, SurgoCap is the largest day-one capital-raise by a woman-led hedge fund.

At least two other prominent hedge fund managers are starting their own long/short equity shops in the US this year with credible hopes of breaking the $1bn mark on day-one.

What is the future for crossover hedge funds?
SurgoCap’s $1.8bn raise defies record low in hedge fund launches

Kultura Capital Management, led by Kristov Paulus, formerly of Whale Rock Capital Management, is starting in San Francisco later this year, while Patrick Fu, formerly of Sequoia, is starting Dandelion Capital Management in Los Angeles.

The tracker also features launch plans from existing firms. The most notable to hit the headlines in January was ValueAct Japan Master Fund, as activism rises up the agenda in the country. See the other names here.

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