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From Kirsten Bischoff, Opalesque New York:
Hedge Fund Research estimates the hedge fund industry lost approximately 1000 funds over the course of the past year. The current wave of closures may have abated somewhat but even through this summer the news of shuttering funds has continued. Just over the past few days, in putting together this series Opalesque has carried news of funds closing for a myriad of reasons: SEC investigations, performance below highwater marks, decimated asset bases, the health of a manager, etc.
Not all funds close under forced liquidations, many closures occur because partners decide to part ways, or as in the case of the recent Atticus announcement - a manager wants to spend "more time with his family". This series will look at a few of the most important aspects of closing a fund, and some of the best practices to be considered to protect future endeavors.
Once the decision has been made to close a fund, it is important to determine which of the current staff are considered key personnel for the steps of the process (ie, winding down the portfolio, overseeing vendor relationships for IT, accounting, legal and other purposes, etc.). As important as it is to communicate to investors regarding the steps in a fund closure, it is important to communicate with employees as well.
As more funds have wound down, executive recruitment firms, such as New York-based firm GloCap have ...................... To view our full article Click here
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