Mission
IMQubator’s mission is to realize high absolute returns at low cost by investing in new and innovative managers and strategies. IMQ makes allocations from a pure end-investor perspective.
IMQubator is determined to take complaints from hedge fund investors about the standard hedge fund structure to heart, by ensuring the funds they seed are aligned with the long term interests of investors. IMQubator requires full transparency from underlying managers and provides unrivalled monitoring for end investors, while delivering the emerging manager premium. IMQ is a very cost-efficient incubator, offering investors a diversified multi-strategy platform for typical single manager fees.
Structure
IMQubator is a multi-manager fund in the form of an FGR (Fonds voor Gemene Rekening – comparable to a fund for a joint or shared account), a Dutch fund structure. The manager of IMQubator is IMQ Investment Management B.V. (partner owned), which selects, monitors and guides emerging managers during the start-up period.
Among IMQ’s distinguishing features is the pure end-investor based process of ‘incubation’ which the firm has implemented since inception . This is vastly more involved – and intrusive – than the standard seeding role performed by more run-of-the-mill competitors.
Incubation requires each and every one of the fund managers backed by IMQ to relocate key front office staff to the firm’s Amsterdam base. The funds not only share a headquarters, but the same floor. Portfolio managers bump into one another in the corridor and converse over coffee. Advice, support, guidance, crisis counseling and, not least, close monitoring, are all near at hand.
IMQ, unlike most industry peers, takes an equity stake in a fund’s management company, instead of demanding a gross revenue share. IMQ wants the manager to preserve cash, working capital and regulatory capital in the typically vulnerable period at the start of operations. This is also in the interest of early-stage investors, who like to see stability. The fund will realize an additional return for its investors when the equity stake in the manager is sold. In some cases, managers will buy back the equity stake, and in other cases it will be sold through the secondary market in equity participations.
I see a tremendous amount of talent in the Netherlands, but they often lack relevant experience in just that one field, such as strategic positioning. An incubation period can greatly increase the chance of success and deliver mature entrepreneurs.
Theo Kocken, CEO Cardano
The Management Company of IMQubator
The manager of IMQubator is IMQ Investment Management B.V. The manager selects and manages the investments of IMQubator. Once selected, a new manager will be guided and closely monitored on a weekly basis by IMQ Investment Management as the manager of IMQubator. In addition, the IMQubator management company can offer advice related to staffing, media handling, sales, marketing and other entrepreneurial aspects in the periphery of the real investment work, thus helping to create the right conditions conducive to long-term success.
IMQubator Investment Committee
The manager submits investment proposals to the Investment Committee of IMQubator for approvals after a multi-month due diligence process. The Investment committee is the forum where IMQubator’s sponsors have the ultimate say about which managers get the go-ahead.
