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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.”<\/p>\n