The concept of seeding is straightforward. A fund manager receives an allocation from one or more investors of sufficient size in order to ensure the launch of his hedge fund strategy. Unfortunately, that is where the simplicity broadly ends. Whilst the larger and more established seeders do have their own 'standard' terms, there is no such thing as a 'standard' seed deal. Seeding deals can vary widely, from seed investors who seek preferential investment terms, to seed investors who also seek control over the constitution of the fund and its offering terms together with a share of future revenues and/or an equity stake in the investment management business. In return for such terms, the fund manager should secure committed seed capital which will remain in the fund for an extended period allowing the manager time to build its track record and attract new capital.