Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund side pocket pricing improves - Cattegatt

Wednesday, September 24, 2014

Bailey McCann, Opalesque New York:

Cattegatt, a specialist broker and advisor for secondary interests in private equity limited partnerships and illiquid hedge funds, sees an improvement in pricing for hedge fund side pockets this year. Investment holding periods in the underlying side pockets have shortened, making illiquid securities more attractive, according to new research from the firm.

The $100 billion market for illiquid hedge fund side pockets started in 2009 and was predicted to last for one or two years until it was cleaned up i.e. the illiquid holdings had been realized and turned into cash. The market recovery lingered however, causing slower than anticipated conversions. The improved economic climate over the last six months, has increased the activity of deal flows from investors.

There has been a surge in interest for hedge fund side pockets from an increasing number of buyers. Prior to 2013, the secondary market was dominated by a few highly informed specialised investors, since then, and especially this year, a wider audience of alternative investors have started to bid on these assets, as a result of the lower perceived risk due to the improved climate, bringing more clarity to the underlying values.

While previous years may have been characterised by larger portfolio sales from forced sellers and only a handful of buyers, deal flow seen by Cattegatt over the last 12 months has featured an increased amount of smaller pieces from motivated......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1