Assets of new fund launches are down by 30%, with only one
multibillion-dollar launch among the lot
Is the era of billion-dollar-plus hedge fund launches
nearing an end? At the very least, it's taking a pause. So far
this year, only one has made it out the gate - the $3.5
billion-plus Old Lane Management set up by former Morgan
Stanley heavyweights Vikram Pandit, John Havens and Guru
Ramakrishnan. And without the presence of big-ticket launches,
the top 51 new funds with a minimum of $25 million in assets,
raised a mere $11.7 billion. That's just about 30% less than
that raised by funds in Absolute Return's semiannual new funds
survey at this time last year. The total number of new funds
declined by 30% as well.
A capital-raising crunch has hit the entire startup
business, thanks in part to funds-of-fund redemptions and an
influx of fiduciary investors who...