Hedge Funds Monetizing By Selling Stakes To Institutional Investors
The financial services industry is on more solid footing than it has been for quite some time, yet institutional investors are increasingly taking equity stakes in the funds in which they invest, a report from Deloitte’s Center for Financial Services observes.
Deloitte's 2015 Alternative Investment Outlook (20 page PDF)One of top three trends is institutional investors purchasing hedge funds
One of the top three trends occurring in the hedge fund world is fund owners “monetizing” their business and raising assets to manage by offering Institutional investors a stake in the company. This, in turn, is both creating opportunity and raising fiduciary concerns at the same time.
The trend toward Hedge Funds and private equity managers providing their institutional investor clients ownership in the fund took a significant uptick in 2014, the “2015 Alternative Investment Outlook” observed. In fact, the trend has persisted to the point that what Deloitte characterizes as an “active marketplace” now exists where new would-be fund managers and existing managers offer their investors ownership exposure in the fund....MORE
