Publications

Hedge Funds in Private Equity

Fall 2005
Stephanie Breslow
Investment Management Developments - Fall 2005

In recent years, we have seen increasing activity by hedge fund managers who are expanding beyond the traditional arena of hedged public securities investing to embrace a broader range of assets and strategies, including activist investing, distressed investing and private equity/debt investing. In some cases, these less liquid strategies are limited to a portion of a fund's portfolio; in other cases, they comprise the fund's core strategy, and fund terms are modified to address reduced liquidity by incorporating some of the terms traditionally used by private equity funds. These hybrid strategies and structures have blurred the line between private equity and hedge investing and have enabled hedge fund managers to become meaningful players in the private equity marketplace.