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From The Opalesque Team:

As the hedge fund industry has witnessed declining assets and managers are forced to make difficult decisions in terms of budgeting, service providers have maintained a place of importance due mainly to investor demand. "Another factor [in asset raising] is getting the right service providers. Most of the good ones in many cases won't talk to anybody unless they have a commitment of $100 million to start. It is really difficult to get good service providers, which is then a mark against a fund if they don't have the top administrators, the top law firms or the top prime brokers," points out Judith Posnikoff, of California-based Pacific Alternative Asset Management (PAAMCO) in the newest Opalesque Roundtable (accessible here: Source

PAAMCO is a fund of funds with several decades of investing on behalf of US pension plans and institutional investors into hedge funds. Posnikoff's statement regarding the current focus on the infrastructure and support base required of hedge funds is one example of the growing importance of the support administrators, risk management specialist firms, law firms and other such providers have brought to the hedge fund industry.

Hedge funds looking to raise assets during the current global financial crisis are beginning to realize this importance as well. Hedge fund consultant Robert "Bucky" Isaacson of the firm Futures Funding t......................

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