The Problem
What came first, a performance track record or AUM? This dilemma, compounded by escalating start-up expenses and regulatory hurdles, creates a highly challenging environment for emerging Portfolio Managers (PMs).
The Solution
AB Asset Scale fund offers acceleration capital to PMs who want to grow their AUM and performance track record.
AB supports and partners with both emerging and established managers, working closely together to develop and grow their respective funds.
An acceleration capital platform that is designed to facilitate allocation to PM’s while markedly limiting downside risk for AB and its investors; otherwise known as first loss.
The platform is an investment structure designed to shield investors from potential losses by absorbing these through a capital layer, provided by the PM's.
This mitigation of risk encourages the flow of capital to these opportunities due to their improved risk-return profiles.
Existing accelerator platforms in the US only accept PMs with access to personal or derived capital of $5m+ or more. In contrast, AB extends its platform to individuals with capital of $250k+, thus filling a critical void in supporting talent that would otherwise have limited options.
We source talent from our extensive industry experience, spanning many decades.
Seed investors will receive a share of the management fee charged by the firm to the PMs, which will act as a floor on their annual return, as well as a share of the portfolio’s performance, which is expected to exhibit low aggregate volatility.