Fri, Sep 22, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund secondary market no longer just an escape route but also a liquidity tool

Thursday, August 01, 2013

amb
Richard Beard
Benedicte Gravrand, Opalesque Geneva:

Trading in hedge fund secondaries has become very popular since 2008, and now more and more investors use it to acquire liquidity.

Apparently, investors were still sitting on an estimated $50 to $75 billion of illiquid and impaired hedge fund investments late last year. This is improving a bit. According to Richard Beard of Stream Capital, an estimated $35 to $40 billion still remain today.

Some fund managers not into it "The ability to sell illiquid assets through the secondary market has encouraged a large number of managers to auction off these holdings and return capital to their investors," Beard tells Opalesque. "However a lot of managers have yet to address the situation."

This is echoed by a recent survey done by Hedgebay, a player in the secondary hedge fund market where Beard used to work, which says "hedge funds … need to be further educated regarding the benefits the market can provide funds seeking additional sources of liquidity."

By and large, institutional investors are happier to use the secondary market than a few years ago. "Deleveraging has played an important reason coupled with a shift to more generic investments and real assets; hence a real need to use the space for opportunity costs," Beard says.

Richard Beard is the ......................

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. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  2. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  3. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  4. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N

  5. ...And Finally - FAN-antic[more]

    From Newsoftheweird.com: Jeffrey Riegel, 56, of Port Republic, New Jersey, left 'em laughing with his obituary's parting shot at the Philadelphia Eagles. In it, Riegel asked that eight Eagles players act as pallbearers, "so the Eagles can let me down one last time." Riegel owned season tickets for 3