The financial crisis of 2008 has changed forever the relationship between hedge funds and prime brokers. A prime broker may best be viewed as a bridge between hedge funds and their investors on the one side, and institutional investors on the other side who may be lenders of stocks or funds. More important, at the hedge fund end, we see a symbiotic relationship with the prime broker as the source for custodial services, funding...
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In a new report by the research firm Preqin, at the end of 2011, private equity had $3 trillion in assets under management for the first time. In addition, according to the Wall Street Journal’s David Benoit, there was a nine percent rise in assets under management last year, including unrealized portfolio values and “dry-powder” that funds will invest. While the nine percent growth sounds positive, Preqin said this represents a slower growth than the...
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