More than 4,000 hedge funds and PE funds have launched in China in last 3 months

More than 4,000 new Chinese hedge and private equity funds have launched in the last three months, reported the Financial Times. The number of private investment funds — including securities, private equity, and venture capital — totalled 12,285 by the end of May, up from 7,989 three months earlier, figures from China's securities regulator show. Assets under management increased by $75bn to $433bn.

Along with its stock market, the number of millionaires in China has skyrocketed, up 82% from 2012 to total 2.4 million, and another 50%to 3.6 million in 2014, reports Wealthmanagement.com. In contrast, the number of millionaires in the U.S. only increased 18% from 2012 to 2013, and only 5% in 2014, according to Boston Consulting Group's recent Global Wealth Report. So it's little surprise that so many funds have launched in recent times.

Advanced planning for start-up hedge funds general partners

With general partners squarely focused on wealth creation through investment management, many new hedge funds do not initially address - or even consider - advanced planning elements that can substantially enhance or diminish personal and family wealth, writes Alan Prince in Forbes.com. According to Alan S. Kufeld, partner at Flynn Family Office (FFO), "Research with 188 general partners in start-up hedge funds, where the average assets under management was US$63.2 million, suggests that most new managers are largely overlooking significant opportunities." ... Hedge fund general partners of start......................

To view our full article please login

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