But there's more of them, so terms are getting better
The flow of assets into new hedge funds is on
the increase, and more and more innovative - and even esoteric
- strategies are popping up all over the industry. But emerging
managers are paradoxically finding it harder than ever to raise
money. If you don't have the pedigree and track record of a
William von Mueffling or an Eric Mindich, it's a struggle.
"This is the most difficult environment for raising capital
that I have ever seen," says Bob Leonard, head of global
capital introductions at Credit Suisse First Boston.
As a result, many new funds are looking at incubators for
seed capital - despite past complaints regarding the tough
terms they demand. Regulatory changes and disillusionment with
prime brokers' capital introduction services are also sending
fledgling managers into the arms of incubators. On the flip
side, there's a proliferation of...