Blue-chip hedge funds, which have been closed to raising new money for years, are now raising funds to take advantage of the market volatility. In Asia, private debt funds are gaining traction amid adjusted valuations and opportunities.
DE Shaw is raising $2 billion in the first fundraising for its flagship vehicle in seven years. The move mirrors those of peers Baupost Group and TCI Fund Management in order to capitalize on opportunities thrown up by market turmoil.
«We’re hearing from a lot of managers that they’re setting up new vehicles to take advantage of the dislocation,» said Patrick Ghali, co-founder of Sussex Partners, who was quoted in «Financial Times» (behind paywall).
Fundraising Cap Lifted
With the market rout, the New York-based quantitative group started approaching investors about raising $1 billion for its $13 billion Composite fund, which has been closed to new investments since 2013.
When it reopens on 1 April, the fundraising cap has been increased to $2 billion because of investor demand and opportunities thrown up by moves in the market, the paper reported, quoting a person familiar with the situation. DE Shaw declined to comment.
Another big name, TCI, is also looking to reopen even though it suffered large falls in performance this year. The London-based fund, which invests in a concentrated portfolio of stocks, has been approached by investors wanting to increase their allocations.
Fundraising Activities In Asia
In Asia, private debt funds have grown as an asset class and continue to see interest. Singapore-based fund manager Pierfront Capital Fund Management on Monday announced the first close of its latest real asset private credit fund at $200 million.
The fund, Keppel-Pierfront Private Credit Fund, secured $100 million each from its two sponsors, Pierfront Capital Mezzanine Fund (PCMF) and Keppel Capital Holdings. PCMF is owned by Temasek Holdings (90.91 percent stake) and Japan’s Sumitomo Mitsui Banking Corporation (9.09 percent).
