Apeira Capital Seeks $200 Million for Hedge Fund-Like Bets

(Bloomberg) -- Natalie Hwang, the former head of Simon Property Group Inc.’s venture capital arm, has launched a new firm and is seeking $200 million for a debut fund.

Hwang has been discussing the vehicle with prospective investors, according to documents seen by Bloomberg and a person with knowledge of the matter who asked not to be named discussing private information.

The New York-based firm, Apeira Capital Advisors LLC, aims to use “hedge fund principles and practices” to achieve returns, according to company documents. While the firm will largely place long-term wagers on high-growth companies, it will differ from traditional venture capital firms by using strategies to profit from company valuations that have ascended to levels it believes are too high, the documents show.

Apeira is pledging to home in on one corner of technology in particular: closely held companies that are innovating and disrupting distribution, including goods, services and content.

“We believe the threat of displacement to market participants who derive their value through effective distribution has never been greater,” Apeira says in its marketing documents. Such participants include real estate investment trusts and media companies, among others.

A representative for Apeira declined to comment. The firm’s name is derived from the feminine-plural of the Greek word apeiron, which means “unlimited.”

Hwang, who previously worked at Blackstone Group Inc., oversaw Simon Ventures’ bets in electric scooter startup Bird, media publisher Bustle Digital Group, data provider Foursquare Labs Inc. and online retailer Verishop Inc., health and beauty subscription service FabFitFun as well as menswear marketplace Grailed. Hwang left Simon Ventures in January and remains involved as a senior adviser.

From its inception in 2015 through Dec. 31, Simon Ventures has delivered a multiple on invested capital, or MOIC, of 4.6, and an annualized net internal rate of roughly 50% after fees and expenses, according to a person with knowledge of the matter.

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