Investment Management Firms

Opalesque, the world's largest publisher based subscription on alternative investments, hosts a Webinar: The Monetization of Hedge Fund Management Business July 10, 2008 10 am New York time.

Registration is now open and qualified participants (see below) can register here:
www.opalesque.com/index.php?act=static?=webinar

The traditional management partially monetize a hedge fund company

There are five methods to partially monetize investments in a company management of hedge funds:
(1) a traditional IPO
(2) a reverse merger into a public shell (CAPS)
(3) a listing on AIM, without capital raised
(4) selling less than 100% of capital or
(5) the sale of an interest income.

Examples of traditional IPOs are human, Och-Ziff, Gottex, RAB Capital, BlueBay, Polar, and Ashmore (plus Fortress, Blackstone, and Partners Group, if extended to other managers assets). They should not be confused with the IPOs of publicly traded closed-ended funds.

Examples include GLG reverse merger and the assets of the Alliance. Examples of an AIM listing without raising capital include Absolute and Charlemagne. An example of a partial sale would include Highbridge and examples of revenue include interest AQR, First Quadrant, Lansdowne Avenue, Winton, and most of the businesses supported by seeding platforms.

Except for the man and the Partners Group in Switzerland, each of IPOs has been a disappointment compared with their initial offering price. Regarding Reverse mergers, GLG has not been successful so far, even after GLG coughed up nearly $ 500 million for the shift is done. Alliance's assets - Tailwind reverse merger which was announced nearly 5 months increased radio silent, which is not a positive sign.

AIM listings without raising capital without a validation by third value if they are traded publicly and was absolute nothing short of a disaster, so that Charlemagne is off more than 50%. Selling less than 100% of capital or interest income seems to work best, but a minority often imposes restrictions under which hedge fund managers chafe, while interest income is not. If at least 100% equity stake or interest income, each method still raises the question of how to monetize the rest of the property.

Selling Out

The only way to fully monetize a business management of hedge funds is to sell. Unfortunately, the total sale usually ends with the sellers to leave at the earliest opportunity and the buyer usually has great difficulty in maintaining the value they bought. Examples Glenwood, RMF, HBV and Old Lane. As such, buyers will naturally (a) conservation and prices are generally lower than in other industries to follow.

Creating a reinsurer or the Bank and the merger of all or part of hedge fund manager in her

A new alternative is for the hedge fund manager to sponsor the creation of a reinsurer or bank that allocates all of its assets to invest in sponsorship manager, offers a significant amount of permanent capital for the manager (making Business management, higher value) and the significant production in higher yields for investors that funds manager without a commensurate increase in risk. Once the reinsurer or bank is fully developed, it may acquire all or part of the business management of hedge funds.

In this way, the monetization process is able to benefit from many points better monetization of other alternatives. For example, it allows a total sale (without the normal problem of loss of control) and creates a publication.