Hedgebay Says HFs Should Look To Secondary Market For Funding

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.”

 


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...