Our 2024 observation period indicated an extension of a number of trends in investment fund seeding transactions that we have been tracking for more than a decade. First, institutional seeders continued to represent an outsized share of observed seed transactions – importantly, acting as the driving force behind a significant increase in the observed median check size, as well as continuing to focus on ensuring a high degree of alignment between the manager/GP, the seeder, and third-party investors. Second, seed investments were nearly as likely to be made in private equity/private credit and other illiquid or less-liquid strategies, as opposed to the historical significant overweighting of seed investments in hedge funds and similar highly liquid products. Overall, observed activity was steady year over year, with institutional seeders again being the most active participants
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