Divorcing Your Seeder: Exit Strategy Considerations for Hedge Fund Managers Entering Seeding Arrangements

February 1, 2017 – Media Mention
Hedge Fund Legal & Compliance Digest

Stephen Jacobs was quoted in Hedge Fund Legal & Compliance Digest discussing the factors that must be considered when investors and hedge funds enter seeding arrangements. Managers should negotiate terms for exiting an initial seeding agreement because multiple variables can push either the manager or the investor toward the door. Jacobs told the publication, “in a negotiated departure, when things come to maturity or end up becoming somewhat conflicted, the seed investor and the manager will come to an agreement so that over a course of time the seeder will exit and the relationship will run its course.”