Mon, May 27, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Walkers survey: 2018 was a positive year for new fund launches

Wednesday, November 14, 2018

Bailey McCann, Opalesque New York:

Despite bumpy performance, 2018 has still been a generally positive year for alternatives according to a recent survey from Cayman law firm Walkers. The annual report on trends in the alternative investment industry shows that so far this year there has been a steady stream of new fund launches especially in hedge funds and private equity. Notably, many new hedge funds are coming to market with headline management fees of 2%, defying recent downward pressure.

Hedge fund performance fees are also creeping back up. In 2018, 54% of new funds launched with a 2:20 structure, up from 49% in 2017. Investors who want to bring down that overhead have had to do so through side letters, or by going into founders share classes that have lower fees but longer lockup periods - all indicators that managers are feeling a renewed sense of confidence when it comes to negotiating with allocators.

Data in the Walkers survey shows that lockup periods have also evolved. Half of hedge funds require a lockup period of 18 months or more - up from 39% last year. Hard lockups are becoming more common as well, meaning that investors can't pay an early redemption fee to get out before 18 months have passed. 25% of funds are using gates to control redemptions up from 20% in 2017.

Alongside new funds, Walkers notes that 2018 has been a busy year for restructuring existing hedge funds in anticipation of investor demand. Some firms have altered their man......................

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. Redemptions hit quant king AQR in performance slump[more]

    From Financial News: AQR Capital Management, one of the biggest quantitative fund managers, is undergoing a prolonged performance downturn that has led to investors withdrawing increasing amounts in 2019. The Connecticut-based firm, which manages both hedge funds and mainstream long-only funds,

  2. Investing: Hotshot active fund managers will soon have a way to play the ETF game, US hedge fund Coatue may lead $120m funding in Faasos parent, David Tepper's Appaloosa sharply boosts bet on U.S. stocks, 3 big-name pot stocks money managers dumped in the first quarter, Secretive investment firm Lone Pine Capital is quietly minting tech unicorns in Seattle, Hedge fund Marshall Wace is a secret winner in the Amazon-led $575m funding round for food-delivery company Deliveroo[more]

    Hotshot active fund managers will soon have a way to play the ETF game From CNBC: ActiveShares, a product built by financial innovation firm Precidian Investments, received an SEC nod that its so-called nontransparent ETFs should be approved. A marked break from the norm, nontransparent

  3. Tech: 'It's a cat-and-mouse game': The head of technology at $60bn hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI, Computer models won't beat the stock market any time soon[more]

    'It's a cat-and-mouse game': The head of technology at $60bn hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI From Business Insider: A big part of Alfred Spector's job is to think about the future. Spector, the chief technology officer at Two Sigma and head

  4. Activists: Voce Capital drops proxy fight with insurer Argo Group, Blackstone battles Elliott for QEP, Sony CEO stresses value of Sony pictures entertainment at strategy briefing[more]

    Voce Capital drops proxy fight with insurer Argo Group From Express News: San Francisco hedge fund Voce Capital Management has dropped its proxy fight with Argo Group International Holdings, the specialty insurance company that has its U.S headquarters in San Antonio. Voce blamed A

  5. People: Hedge funds raid BNP's shuttered prop desk amid talent race[more]

    From Bloomberg: BNP Paribas SA's closure of its proprietary-trading desk has triggered a hiring frenzy for the world's biggest hedge funds. Citadel has recruited Mathieu Gaveau, who was head of rates at BNP's Opera Trading Capital division until it was shut down in January. Paolo Nicolosi, a se