Capital from Family Offices
Raising Capital from Single Family Offices
(http://HedgeFundBlogger.com) Here is a short piece on how many of the world's most sophisticated investors are looking to not only sustain current hedge fund related investments, but increase them. Here is the first shred of evidence that hedge funds are going to emerge 2x as strong in 2011 as they were in 2007:
Advisers for ultrawealthy investors are bullish on hedge funds, with many planning to increase their allocations to the alternative investments next year, according to a new study.
A majority (58%) of single-family offices around the globe participating in the On the Rise survey indicated plans to increase asset allocations in hedge funds for 2009. The study was co-sponsored by Red Bank, N.J.-based G Capital Management LLC and Rothstein Kass & Co. PC of Roseland, N.J.
The study of 146 single-family offices was completed in late August, before the Wall Street turmoil began in mid-September, and as a result, many of these firms were contacted again to see if their plans were changing. However, in the ensuing follow-up interviews, an even greater percentage (62%) said they would boost hedge fund allocations next year.
Single-family offices are defined in the study as "created exclusively for or by a single exceptionally wealthy family to provide control, negotiating leverage and a defense for family members." The single-family offices surveyed had investible assets ranging from $312.2 million to $1.3 billion, with a majority of the firms (58%) based in Canada and the United States.
"I was surprised [that plans for increasing hedge fund allocations] was as strong the second time around," said study co-author Russ Alan Prince, president of Darien, Conn.-based Prince & Associates Inc. "I think it's going to stay strong." Read more...