{"id":36164,"date":"2013-06-14T09:01:53","date_gmt":"2013-06-14T13:01:53","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=36164"},"modified":"2013-06-14T19:42:13","modified_gmt":"2013-06-14T23:42:13","slug":"hedge-fund-research-116-billion-locked-in-zombie-funds","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2013\/hedge-fund-research-116-billion-locked-in-zombie-funds.html","title":{"rendered":"Hedge Fund Research: $116 Billion Locked in Zombie Funds"},"content":{"rendered":"

\"Main_240-Zombie-private-equity-funds\"<\/a>New York (HedgeCo.Net) – Reuters reports that new data from Preqin shows that there are approximately 1,200 private equity funds that can be described as zombie funds sitting on $116 billion in assets.<\/p>\n

In a zombie fund, the GP is sitting on their assets past their expected holding period with no intention of making realizations and no plans to raise a successor fund, while continuing to collect management fees from their investors.<\/p>\n

“No one is a winner when zombie funds are involved and they represent a clear misalignment of interests between the\u00a0fund manager and investor.” Ignatius Fogarty \u2013 Head of Private Equity Products at Preqin said in a statement, “Consequently, GPs should be eager to realize investments and return capital to investors so that there is no reputational damage that adversely affects their ability to raise a follow-on fund. The secondary buyout market goes some way in offering a solution to return capital to investors.”<\/p>\n

Secondary buyouts can offer a solution, Preqin says, with a fund manager taking over the assets of a zombie fund and creating an exit opportunity and liquidity to the primary vendor.<\/p>\n

Alex Akesson
\nFor\u00a0HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a>\u00a0is a premier\u00a0hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Reuters reports that new data from Preqin shows that there are approximately 1,200 private equity funds that can be described as zombie funds sitting on $116 billion in assets. In a zombie fund, the GP is […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[919,3],"tags":[],"class_list":["post-36164","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=36164"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36164\/revisions"}],"predecessor-version":[{"id":36167,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36164\/revisions\/36167"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=36164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=36164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=36164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}