News & Perspectives
64% of U.S. funds launched in 2012 had equity or equity-related strategies
Seward & Kissel, a New York and Washington-based financial law firm, published this month its annual New Hedge Fund Study: 2012 Edition of US based, newly formed hedge fund managers. The key findings were:
1. 64% of the funds had equity or equity-related strategies (up 14% from the 2011 study). 2. Management fees were generally higher for non-equity strategies, while incentive allocation rates continued to be pegged at 20% of annual net profits across all strategies. 3. More funds permitted monthly redemptions in 2012 as compared to 2011 (the percentage increased from about 25% in 2011 to 36% in 2012), and a higher percentage of equity strategies had lockups or gates as compared to non-equity strategies. 4. Sponsors of both U.S. and offshore funds set up master-feeder structures over 80% of the time. Most offshore funds were established in the Cayman Islands. 5. In the area of seed capital, the initial funding in many of the bigger deals was between $75 million and $150 million typically locked up for two or three years; for the smaller deals, the amounts ranged from $10 million to $50 million.
Asian funds' AuM getting smaller
Singapore-based hedge fund consultant and manager GFIA noted a significant ......................
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