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ABOUT Prospect Capital, founded by Stuart Hamlyn and Bill Belhumeur, advises institutional investors, fund of funds, and family offices on their alternative investment portfolios. Our firm concentrates on locating and researching the highest quality established and emerging fund managers that are most suitable for sophisticated and experienced hedge fund investors Traditionally, we have concerned ourselves with mid-sized, outstanding hedge funds that have available but limited capacity. These products have spanned a variety of strategies that are typical components of an alternative investment portfolio. Our role has changed slightly as our company has matured and the industry has evolved. The record flow of new hedge fund assets has caused many of the best established funds to close to new investment, and this creates a challenge for large investors who require significant capacity in each investment. We have had a considerable amount of success sourcing capacity in large, closed, top-tier managers for our clients - many of these funds are recognized as the largest, oldest, most successful, and least accessible in the industry. We continue these efforts, but we have also become responsive to the resulting trend of investors looking deeper into the market for funds that are small enough to accommodate their ongoing investments. Smaller funds often lack a significant track record, which increases the difficulty of identifying quality managers. The diligence required is qualitative and requires deep industry contacts to get reliable recommendations and unbiased referrals. The private nature of the hedge fund universe exacerbates this challenge. Prospect Capital identifies investment opportunities and performs qualitative diligence based on our deep network of investor and industry veterans. While we perform the usual diligence on fund performance, risk controls, legal structure, and portfolios, we take pride in our ability to evaluate the pedigree of the fund manager - how he is perceived by his investors and his peers. Regardless of fund size or tenure, we are always seeking fund managers who are now or will soon be ready to manage institutional assets. As a result of this broadening of market coverage, Prospect Capital is also in a position to locate seed opportunities for investors and participate in the fund development and seeding process at various levels. Our role in this process draws from our hedge fund experience as well as the depth of our experience as investors and operators of small enterprises in both alternative investments and the technology sector. |