Taussig Capital Ltd., creates innovative financial services companies that usually obtain some or all of their capital from asset managers and their investors primarily from the hedge fund industry. The new financial service company invests most, if not all of its assets in one or more investment strategy of the asset manager.
Each new company is expected to benefit from two or more of the following:
(1) Permanent capital;
(2) Systemic efficiencies;
(3) Non-traditional asset gathering;
(4) Tax efficiency and/or;
Taussig Capital is compensated as a consultant for setting up the business and helping to operate it (on some occasions). In addition, Taussig Capital is compensated for raising assets for the hedge fund managers that manage the assets. Finally, the primary incentive for success comes in the form of warrants held in the new financal services companies.