Blackstone Group is preparing to launch a multibillion-dollar fund that will buy stakes in hedge fund managers in the secondary market, says Reuters.
Placement agents and research companies are reporting that real asset and private equity investors are looking to raise additional capital and may deploy up to $200bn prior to the end of 2013.
Private equity investors are moving in on hedge funds with illiquid assets they want to get off their hands in a switching of ‘problem assets’ between sectors of the alternatives industry.
Although fundraising has slowed a little in the last quarter, levels of capital raised by private equity investors in 2011 have been a significant improvement on the prior two years.
Platforms for trading stakes in hedge funds are registering buying interest from among the world’s largest investors, but some say ongoing illiquidity in the underlying investments of some portfolios can be a sticking point.
The private market for trading hedge fund shares might not have returned to a pre-crisis state, with transactions often occurring above NAV. But nor is it any more “distressed sellers selling distressed assets in distressed funds”, which prevailed immediately post-crisis, say intermediaries and advisors Gamma Finance LLP.