Due to the institutionalization of the hedge fund industry, it is more and more difficult for emerging managers to start a fund management company and develop a track record without a significant amount of initial capital. Seeders offer aspiring fund managers the capital to develop the infrastructure needed to run a successful hedge fund management business, often in exchange for a share of the manager’s revenues. A recent Special Research Report issued by Infovest21 offers an overview of available seeding structures, the talent pool for emerging managers, common seeding terms and the growing role that institutional investors play in seeding. For another look by Infovest at the seeding market, see “Seeding, Strategic Stakes and the Evolving Market for Third-Party Investments in Hedge Fund Management Businesses,” Hedge Fund Law Report, Vol. 6, No. 20 (May 16, 2013).