
26 Ge tt in g re ad y fo r Ho lt e Ca pital
could approach the prime brokers; I knew they had special groups that
existed solely to raise assets for hedge funds. I could also then explore
the seed capital angle where one investor gives you a fairly large chunk
of money and gets a stake in your overall business. One of my colleagues
had told me after a few too many beers that a potential seed investor had
promised him $75 million for 30 per cent of the business, and, while I
didn’t believe that for a second, it made me think, ‘If he can get $75
million, I am sure I can raise $40–50 million.’
The process of starting a hedge fund is not