Hedge Fund Start-Ups Capital Raising
Twice as Many Start Ups Raise Three Times the Capital
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