Thu, Aug 13, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Enhanced risk management and due diligence needed on hedge funds ad rule

Wednesday, July 31, 2013

amb
Kristoffer Houlihan
Komfie Manalo, Opalesque Asia:

This coming fall, expect hedge funds, private equity funds or early-stage companies to start pitching opportunities to buy into the once 'for elite-only’ portfolios as the Securities and Exchange Commission lifted the 80-year ban on advertising by private placement offerings.

But Kristoffer Houlihan, founder and Managing Partner at independent strategy and risk advisory company Armilla Partners, warns that the lifting of the long standing ad ban could trigger a risky, black box investment culture that takes undue advantage to gullible investors.

"The new rule could evoke more interest about hedge funds and more need for evaluation. We expect more request for information about hedge funds and other private placement offerings in the coming months. People will start asking questions," Houlihan said in an interview with Opalesque.

However, the new SEC rule did not change the restrictions on hedge funds. Houlihan noted that the same rule applies that private funds can sell their products to accredited investors with at least $1m in net worth, excluding their primary residence, and those who earned more than $200,000 annual over the past two years.

This could hurt entrepreneurs and small businesses that the JOBS Act intended to protect and promote by finding new ways to fund their businesses in the first place, Houlihan warns. Fund managers must establish the qualificat......................

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. GCM Grosvenor to merge with Cantor Fitzgerald SPAC, to go public[more]

    Laxman Pai, Opalesque Asia: GCM Grosvenor, a global alternative asset management solutions provider with approximately $57 billion in assets under management, is planning to go public by merging with a special purpose acquisition company backed by the financial-services firm Cantor Fitzgerald in

  2. Ocean Avenue Capital Partners wraps up the fourth fund at $350m[more]

    Laxman Pai, Opalesque Asia: California-based lower-middle market private equity firm Ocean Avenue Capital Partners (OACP) has closed its fourth fund at a hard cap of $350 million, beating its $300 million target. OACP, which manages approximately $1.3 billion of capital, expects that represe

  3. New Launches: Hedge-fund launches pick up despite Covid-19 pandemic, Taconic launches new credit fund, Deerfield raises another $2.5bn as investors flock to health care investments, Blackstone's second fund targeting GP stakes raises $3.5bn so far, Morgan Stanley IM targets greener recovery with Euro sustainable funds, UCL hits $131m first close for sophomore venture capital fund, Fulcrum launches climate change fund, Blackbird raises $356m fund, Crypto venture fund raises $110m from universities, Prime Capital launches Liquid Alternatives Credit fund of funds[more]

    Hedge-fund launches pick up despite Covid-19 pandemic From WSJ: Raising money for a new hedge fund long was contingent on a host of in-person meetings. But a slate of managers are launching sizable startup funds despite complications wrought by the new coronavirus. Hedge-fund man

  4. PE/VC: How private equity co-investments can accelerate investor returns following a crisis, Pandemic slowed private equity fund closings in first half, Private-equity giants inking more deals in Asia[more]

    How private equity co-investments can accelerate investor returns following a crisis Investing in a post-crisis period is never simple. The atmosphere of opportunity compels investors to put capital to work. However, where and how to best invest becomes more important than ever. P

  5. Investing: Viking Global slashes exposure to hot tech stocks, Warren Buffett may have bought back a record $7bn of Berkshire Hathaway stock in the past 3 months[more]

    Viking Global slashes exposure to hot tech stocks From Institutional Investor: Viking Global Investors in the second quarter sharply cut back on positions in at least three of the market's hottest tech and internet stocks, according to a regulatory filing made public late Friday afterno