Hedge Fund Start-Ups Capital Raising

Hedge Fund Start-Ups Capital Raising

Twice as Many Start Ups Raise Three Times the Capital

In the first six months of 2010, two times as many hedge funds launched as those launched during the same time period last year. Furthermore, these funds raised three times as much capital to start up as those funds launched during the first two quarters of last year.
All told, funds launching between January and June netted $10.9 billion, according to ARmagazine’s biannual New Funds Survey. In the first half of last year, new  hedge funds managed to raise just $3.9 billion, an all-time low. 
Most of the money was raised by a pair of spin-offs and three new funds launched by established funds. Overland Advisors garnered $3.6 billion for its spin-off from Wells Fargo, most of the money from Wells Fargo itself. Former Citigroup energy trader Andrew Hall’s Astenback Capital Management—a joint venture with new partners Occidental Petroleum—raised $1.2 billion, while new funds from Highbridge Capital Management, Paulson & Co. and Alden Global Capital each netted about $500 million, according to AR.
All told, 43 new funds debuted with at least $25 million. 

More than 80% of respondents to Rothstein Kass’ fourth-annual hedge fund industry trends survey expect more launches this year than last. A similar number expect as many or fewer hedge funds to close their doors this year. And more than 67% of those hedge funds that are already in business plan fundraising pushes this year.  Source

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