Funds of Hedge Funds

Crestline to buy discounted hedge fund assets


Crestline Investors, the $3.5 billion Texas-based funds of funds business that spun out from the Bass Family, is seeking to take advantage of a short term window of opportunity to buy hedge fund assets on the secondary market at a significant discount. Existing institutional investors of the firm provided an initial allocation of over $200 million to the effort.

In September 2008, the opportunity set looked like it had $200 billion in assets, but this number is likely to have doubled following the continued destruction of the financial markets. HedgeBay, an established secondary marketplace, has an estimated supply