A $3.5 Billion Hedge Fund Lures Cash With Rare Fee Discount
- Selwood offers investors deal seen after last financial crisis
- Credit hedge fund’s assets have grown from $85 million in 2015
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Selwood Asset Management, one of the fastest growing hedge fund firms in London, is enticing new clients with a type of fee structure that hasn’t been seen in the industry since the last financial crisis.
The firm will waive its cut of some new clients’ profits until the net asset value of its flagship fund reaches its previous peak, a threshold known as the high-water mark, according to people with knowledge of the matter. That means Selwood won’t collect a performance fee until the fund has gained 8%, said the people, who asked not to be identified because the information is private. Selwood typically charges performance fees ranging from 13.5% to 30% for its main fund.