NETHERLANDS - IMQubator, the hedge fund seeding platform backed by Dutch pension manager APG, will transform its current Multi Manager Fund into a limited-life vehicle, which will be closed to new investments at the end of this year.
The seeding platform will simultaneously develop a second fund, which will also invest in hedge fund start-ups.
APG continues to endorse the initiative by extending its €250m commitment with a term of 3+1+1 years as of 31 December 2011.
Both vehicles will be open to other institutional investors in addition to APG.
IMQubator (IMQ) serves as a seeding platform to experienced hedge fund managers who want to strike out on their own, provided they agree to be domiciled in the Netherlands.
Jeroen Tielman, chief executive at IMQ Investment Management, said: "Research shows that emerging managers perform significantly better than the hedge fund establishment.
"IMQubator provides an innovative platform that has proven itself since its inception in 2009 - IMQ already has won two industry awards."
Pension funds in various countries are increasingly interested in investing in emerging managers, he said, adding that he hoped Dutch pension funds would follow suit.
IMQ intends to attract an additional €100m to its first fund by inviting one or two institutional investors to join APG in this fund.
So far, 70% of the €250m commitment by APG has been invested, with a full investment expected by year-end.
IMQ typically invests €25m per emerging manager, who will then be guided and monitored on a weekly basis by IMQ Investment Management.
Once the first fund is closed, IMQ will develop a second hedge fund seeding and acceleration vehicle, IMQubator2, to which APG will also commit.