Manager’s guide to seed deals

Simmons & Simmons’s international hedge funds team launches seed deal guide to support emerging hedge fund managers.

22 February 2023

Publication

Seed deals have become an essential consideration in launching a successful new hedge fund management business.

Simmons & Simmons’s international hedge funds team is pleased to launch its new “manager’s guide to seed deals”.

The guide draws on the extensive experience that our team, in conjunction with our New York alliance firm Seward & Kissel, has in relation to seed deals across the US, UK, Europe, Middle East and Asia with a variety of seed investors, including seeding platforms, institutional investors and family offices.

The guide contains essential content for any prospective new hedge fund manager launching a new business and covers the following key questions:

  • How are seed deals usually structured?
  • Do you want a seed deal… what are the pros and cons?
  • What should you consider before speaking with a potential seeder?
  • How long is seed deal capital locked up for?
  • How could a seeder fund working capital in your business?
  • Can seed capital ever be withdrawn during a lock up and if so, why?
  • What other key seeder protections are typically included in the investment documentation?
  • What could your obligations, as a principal, be personally?
  • What are the latest market terms on seed deals?

Please click here to request a copy or speak to your usual Simmons & Simmons international hedge funds team contact.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.