HF and Private Equity
Hedge Funds & Private Equity in 2009
The depressed economic environment which we are now experiencing has forced more hedge funds and private equity firms to close down than within any other single 12 month period. These two industries face a marred public image, overall negative investment returns and an investor base which in many cases now prefers to hold cash equivalents rather than place money at this time in the market cycle. The industry faces many challenges, while also serving as fertile ground for those funds which can prevent losses and recruit talent.
It would seem that the next two years will be either feast or famine for most hedge funds, and as usual most will be left hungry for more capital.