And European and Asian launches are left trailing
Lackluster performance and industry consolidation did
nothing to deter investors from heaping large amounts of
capital into new funds last year, with huge sums flowing into
the largest U.S. start-ups. According to Absolute Return
research, the biggest 81 launches raised close to $40 billion
in assets last year. The total was boosted by 14 funds that
kicked off with well over a billion dollars.
Overall, the huge sums of money raised means that 2004 was -
by some margin - a record year for start-up funds.
However, the survey only captures those funds that ended the
year with $50 million or more under management. When smaller
launches are included - which prime brokers and administrators
estimate to have numbered 400 last year - a further $8.7
billion has to be added to the totals. This is based on the
assumption that the...