Wednesday, 30 July 2014
Last updated 10 hours ago
Sep 5 2012 | 8:56am ET
Nassau-based secondary market provider Hedgebay says hedge fund managers should take advantage of the secondary market as a source of permanent funding.
The secondary market provider says volumes have surged since the credit crisis but most managers have yet to use the secondary market “on a consistent basis.”
Said Hedgebay founder Jared Herman in a statement:
“The majority of hedge fund managers have yet to embrace the potential of the secondary market, preferring to handle the private placement process themselves. As a result, they don’t have access to the range of price offers they could get from a platform, which means they are limiting the chances of getting maximum value from their shares.”
Should the secondary market become a truly mainstream tool, Hedgebay believes broader and more liquid pricing options would become available, making the market a source of permanent capital.
Said Herman: “A source of permanent capital has long been the holy grail of hedge fund managers, but most don’t have the option of backing or launching a reinsurance vehicle, and even those that have had limited success so far. The secondary market gives managers access to a permanent source of funding, as well as creating a broader and more liquid for all investors, on the buy and sell sides.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…