A variety of models are being used as the long-awaited
Over the years, there has been much talk of the imminent
arrival of the private equity giants in the hedge fund space,
but the invasion never came, partly because despite superficial
similarities, the two businesses are surprisingly different.
However, all that is set to change, with a number of the big
private equity firms preparing to make their play with the
launch of single-manager funds.
For the time being there is no consensus on the right model.
Some firms like Texas Pacific are bringing in outside managers
and treating their operations as stand alone entities. Others,
like Blackstone, are looking for synergies between their new
hedge fund teams and their existing private equity research
There is also still a deep divide among the leading players
about whether or not funds of funds have a role in the