During the financial crisis, seed investment was once silent. In 2008 -2009, the average loss of hedge funds was nearly 20%, reaching the worst record in history, and all major institutions avoided developing new fund managers. In 2007, there were six new fund management companies, which managed more than $654.38 billion in capital. But only two fund managers took office last year, and there was no room for seed investment. At present, although hedge fund investors are keen on companies with remarkable performance, they lack trust in fund managers, so fund managers with insufficient funds have a strong demand for seed funds. Some investment institutions think that now is a good time to return to the field of seed funds, so they began to compete for the world. Blackstone Group, the largest company in the industry, recently raised $2.4 billion for its second and largest seed fund. In addition, investment institutions such as Reservoir Capital Group, Larch Lane Consultant and Songshuqiao Investment also plan to promote new funds.

Generally speaking, seed fund investors will invest $654.38+0 billion to $654.38+0.5 billion in a hedge fund to provide funds for fund managers to start trading. Generally, a seed fund invests in a hedge fund for three years, and seed fund investors will return their initial capital after five years. In return, investors can get 15% to 25% of hedge funds. Hedge fund managers usually charge 2% of clients' assets as commission and get 20% of investment income. According to industry insiders, if investors have 10 funds and three funds with a total value exceeding 10 billion, they are confident of making profits. Seed fund investors will provide investors with an annual return of 12% to 15%. Blackstone Group is the largest private capital operation company in the world. In 2007, it invested $65.438 billion in seed funds of eight hedge funds. Although the 65,438+0 hedge fund investment failed in 2008, according to the feedback from investors, the group's fund portfolio still achieved a 50% return.