Sturgeon Ventures reveals growth in incubator firms in the City of London
The number of regulatory ‘incubator’ or ‘umbrella’ firms in the City of London’s institutional financial sector has grown to 52, according to Sturgeon Ventures LLP, which claims to have been the first such firm to launch 18 years ago.
Sturgeon has also announced that it has opened an office in Hong Kong, where it will be a regulated investment manager and asset gatherer known as Sturgeon Hong Kong.
The firm writes that there is substantial market potential in Hong Kong because of growth in start-up managers in Asia, UK fund managers requiring more access to family offices and funds of funds based there and managers who, for many reasons, split their time between the territory and London.
Regulatory incubators, as defined by Sturgeon, provide third-party investment management, investment advice and compliance and eventually direct authorisation support to start-up financial services businesses until they can be directly regulated in their own right. The firm writes that the service has been particularly in demand since the global financial crisis, with many individuals leaving large institutions to set up their own operations.
Sturgeon’s analysis estimates that there are currently around 800 firms that are appointed representatives of incubators.
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AlphaQ – Sturgeon Ventures reveals growth in incubator firms in the City of London