Asian hedge funds line up sweeteners to lure investors

Managers have taken to offering more flexible terms to attract investors to new launches this year amid increased regulatory scrutiny and an acceptance that lack of scale is holding institutions back, reports AsianInvestor.net.

Data from Eurekahedge shows the average size of Asia-focused funds launched in the first 10 months of this year was $21.5 million, less than half the $50 million figure of last year. Eurekahedge analyst Mohammad Hassan reflected, "You need $250 million of AUM to be taken seriously." Even if a large institution wanted to invest in a $30 million fund, the biggest ticket they could write into a fund was $3 million, noted Andrew Williams, CEO of UK-based fund manager City Financial, referencing the 10% limit investors are typically faced with. Asia-based hedge fund managers have had to become more creative about how they structure terms.

Dozens of new funds are being set up in the Gulf Region

In the Gulf Region, dozens of new funds are being set up while about 50% of them will be real estate-focused, the other 50% represent a mixture of private equity, venture capital, mezzanine, credit and hedge funds that engage in more strategies than ever, including commodities, trade finance, film funding, SME credit, or aircraft financing.(full article from B. Gravrand here.) Hedge funds renew confidence in fundraising and focus on liquidity and governance in 2015

The hedge funds space has renewed its confidence into fundraising as the effects of the 2008 global financial crisis are pushed further in the rear view mirror, said international law firm Walkers Global in its Hedge Funds Outlook 2015. The report added that the success in fu......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.