Seed capital for hedge funds set to hit $5 billion in 2011


The amount of seed capital available to fund startup hedge funds could be as high as $5 billion, according to industry projections.

The Blackstone Group is aiming to raise around $1.5 billion for its latest seeding vehicle while Investcorp completed its first seeding deal in two years at the end of 2010.

SkyBridge Capital, NewAlpha Asset Management and Revere Capital are also busy raising capital for seeding vehicles.

Investors shied away from seed deals in 2009 as hedge funds experienced huge out