Taussig Capital AG and its wholly owned subsidiary, First International Capital Ltd., create innovative financial services startups that usually obtain some or all of their capital from the hedge fund industry and/or hedge fund investors and invest most, if not all of their assets in one or more hedge fund-like strategies.
The startups usually raise more than $100 million in equity capital through a Private Placement and/or a Public Offering. They have included insurers, reinsurers, banks, SPVs (for structured products linked to hedge funds and for risk linked securities), variations on hedge fund management companies and funds, and hedge fund-linked products offered by well-established financial services firms.
Each new company is expected to benefit from two or more of the following five themes:
(1) Permanent capital;
(2) Systemic inefficiencies;
(3) Non-traditional asset gathering;
(4) Tax efficiency and/or;
(5) Metamorphosis.
Taussig Capital is compensated as a consultant for setting up the business and helping to operate it (on some occasions) and First International is compensated as an investment banker for raising capital. However, most of First International’s fees are tied to raising assets for the hedge fund managers that manage the assets and its major rewards are in the form of warrants that are tied to the long-term success of the shareholders.