TPG invests in Hong Kong-based hedge fund seeder

The size of TPG's stake in HS has not been disclosed but the move should allow the PE firm to diversify its product offering in Asia's alternative assets space - a strategy pursued by a number of the largest buyout firms on a global basis. HS also stands to benefit from expanded distribution channels.

Brooklands Capital Strategies - a division of TPG Capital BD that has provided placement agent services for several of the firm's funds - has entered into a referral agreement with HS for institutional client relationships. Brooklands is led by Peter McMillan, a long-serving TPG executive, and Dan Carroll, who co-founded the firm's Asian operation, which was formerly known as a Newbridge Capital.

Tim Dattels, managing partner and co-head of TPG in Asia, will join the HS advisory board. The advisory board is chaired by V-Nee Yeh, co-founder of Hong Kong-based asset management company Value Partners and a board member of the Columbia University endowment.

HS was set up last year by Michael Garrow and Johannes Kaps, who previously held senior hedge fund roles at The Blackstone Group and Goldman Sachs, respectively. The company recently announced a partnership with Pleiad Investment Advisors, a hedge fund founded by Kenneth Lee and Michael Yoshino, two former Soros Fund Management executives who began their careers with TPG in Asia.

"Asia's hedge fund industry will see secular growth over the coming years, and HS Group's relationships with the region's strongest investment talent combined with institutional best practices complement TPG's vision for this industry," Dattels said in a statement. He added that Pleiad's founders illustrate the caliber of HS' investment pipeline.

Last year, HS formed a partnership with Swiss hedge fund-of-funds Gottex Fund Management to seed hedge funds in Asia.

Swiss hedge fund-of-funds firm Gottex Fund Management entered into a relationship with HS Group to seed hedge fund firms in Asia.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Financials
• Expansion
• Asia
• TPG Capital
• Hedge funds
• Financial Services