Sun, Sep 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

No one-size-fits-all solution for hedge fund succession planning

Thursday, August 23, 2012

amb
Kyle Vataha
Bailey McCann, Opalesque New York:

Succession planning can be a touchy subject in the hedge fund space. After the death of well-known hedge fund manager Barton Biggs, his firm, Traxis Partners provided a transition plan for investor capital that attempted to absorb investors in the funds Biggs managed himself into the funds managed by others in the firm. However, they also gave investors the opportunity to ask for their money back despite the firm's established track record, a situation may be an object lesson for fund managers currently examining their own succession plans.

"With hedge funds you have a fairly unique situation where the value of the fund is usually tied up in one person, or a few people, and that is what draws the investor. It makes handing them off to another team in the event that something happens more difficult," explains Kyle Vataha, Vice President, Pluris Valuation Advisors in an interview with Opalesque.

Hedge funds often lack the succession planning common to other types of businesses, even other types of financial firms because if the fund is a single manager or even a small investment team, there is rarely a second string waiting in the midst. Usually part of a fund's edge is the unique strategy a manager brings to the table based on his or her unique expertise.

"What happens in this space is that investment managers tend to be focused on their strategy and bringing in assets. The structure of the firm sort of ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali