The market for secondary hedge funds
Tue Jun 5, 2012
In 2008, investors with illiquid hedge fund investments looked to the secondary market to release their stakes. Now demand for 'used' hedge fund goods continues to grow by the billions
By Claire Makin
By now, many players in the secondary market for trading hedge
fund stakes expected volumes to have dried up. They were wrong.
Instead, the market has developed new legs and looks set to run
for at least another 12 months.
|Mark van der Zwan
|Florian de Sigy
"I thought the business would have tapered off now, but
volume has gone up each year since we started," says Neil
Campbell, head of Tullett Prebon’s alternative
investments desk, which launched the secondaries business for
the interdealer broker in 2009. Tullett sees $3 billion to $6
billion changing hands in the secondary market in 2012 to
Hedgebay, which has run an online trading venue for hedge
fund secondaries since 1999, saw volumes of just under $1
billion on its platform in 2011 and expects to transact more
this year. Over the past 12 years,...
ISSN: 2151-1845 / CDC10004H
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