Is it the ripe time to seed hedge funds for liquidity and juicy profits?
Another interesting article that may contradict the recent gloomy moods on the markets:
“The difficulties faced by hedge funds trying to raise capital are allowing investors who can provide seeding to cut great deals,”
“There is a shortage of risk capital available to new managers. It is at historic lows. The premium for those who can provide it is at historic highs, so it is a great business opportunity,”
, investors have preferred larger funds, considering them safer and subject to tighter scrutiny than smaller ones or startups.
“We never want to see our managers become forced sellers because they have to satisfy redemptions, you want to be a buyer at that moment,”
Ladi likes illiquid strategies such as event-driven, which looks for catalysts such as takeover bids to boost the value of its investments. Fat corporate balance sheets could support an accelerating wave of mergers and acquisitions, he said.
“People are overpaying for perceived liquidity, but at the moment they all run for the door it’s not going to be there.”