Secondary Market for Buying and Selling Limited Partnership (LP) Interests in Private Equity Funds, Hedge Funds and Funds of Funds

Limited Partnership Interests

Market Description

Limited partnership (LP) interests are ownership rights in investment vehicles such as venture capital, buyout, real estate and hedge funds, as well as funds of funds (collectively known as alternative investment managers or AIMs). Over the past several years the appetite for limited partnership investments, which are typically longer term in scope, has grown tremendously to over $2 trillion. In parallel, the secondary market for interests in these funds has grown as well. The secondary market is expected to continue to grow at a rapid pace as many limited partners such as pension and other retirement funds seek to reduce their alternative investment exposure. Many are requesting redemptions or simply seeking to get out of their positions largely due to poor fund performance, a need for capital or a desire to rebalance their portfolios. To fund these redemption requests, many AIMs are selling their positions at sub-optimal levels, artificially decreasing capital availability and asset prices as well as increasing market volatility. SecondMarket is well poised to take advantage of this newly launched market, with its deep buyer base and limited partnership relationships and expertise.

Feb 4 2010

The smoldering hedge fund — money.cnn.com

Plainfield is hardly the only hedge fund to struggle in the downturn; its flagship fund's 21.5% decline in 2008 was far from the worst
Unlike many of its peers, though, Plainfield failed to make a dramatic recovery in 2009, and its mediocre results only further piqued angry investors
Despite its expertise in buying cheap, it launched in 2005 when asset prices were soaring, vacuumed up billions -- and then had to find something to do with the cash

Jan 28 2010

Hedge Fund Monarch Unhappy With Hicks’ Rangers Sale — www.finalternatives.com

Hicks’ sports team holding company, Hicks Sports Group, announced its plan to sell the Texas Rangers for an unspecified amount, believed to be more than $500 million
But Monarch Alternative Capital, which holds $100 million of Hicks’ $525 million in defaulted debt, is reportedly unhappy with the deal to sell to a group led by Pittsburgh lawyer Chuck Greenberg and Nolan Ryan, the legendary Hall of Fame pitcher who serves as president of the Rangers

Jan 27 2010

HSBC Names 2009’s Biggest Hedge Fund Winners, Losers — www.finalternatives.com

According to the most recent HSBC Hedge Weekly, Turnberry Capital International, Palomino Fund LTD Class B, and the Henderson European Absolute Return fund are the big winners, up 155.95% (through Dec.), 117.53% (through Nov.), and 110.93% (through Dec.), respectively.