Reuters – Hedge fund investors can sometimes face daunting challenges, both getting into attractive funds or exiting funds with long “lock up” provisions in an industry that continues to growrapidly.
But an increased number of restrictions is benefiting Hedgebay Trading Corp., a firm that seeks to match investors who want to bail out of certain hedge funds with those that may want to get into them.
Ridgefield, Connecticut-based Hedgebay is developing a market for “secondary” hedge fund assets, a business that is well established for investors in hedge fund cousins, the leveraged buyout firms, where investors can be “locked up” for a decade or more.
But so far, experts say a secondary market for hedge fund assets is still in its infancy, a fact that Hedgebay is seeking to change.
“We’re offering a liquidity platform for professional sophisticated investors in hedge funds,” said Jared Herman, co-founder of Hedgebay. “We can get investors liquidity for anything they don’t want to be in, or help them get into funds that are closed.”
