Peter Naismith and Peter Greene examine hedge fund managers’ shift toward alternative asset platforms

In an IFC Review article, “From Hedge Fund to Alternatives Platform: How US Managers Are Pursuing Growth And Stability,” Peter Naismith and Peter Greene describe how US hedge fund managers are increasingly building diversified alternative asset platforms in pursuit of greater scale, stability and long-term growth.

While hedge fund industry capital has reached record levels, fundraising remains challenging, and investor demand is increasingly concentrated among larger, established managers. Against that backdrop, Peter and Peter explore how managers are rethinking their businesses and developing more stable capital structures, including customized managed accounts and fund of one vehicles, seed and GP-stake transactions, and strategic partnerships, evergreen funds and other forms of permanent capital vehicle.

The article also considers the continued rise of multi-strategy platforms and their influence on fee structures, talent practices and strategy diversification. It examines the importance of talent retention, and managers’ growing focus on the private wealth channel as a source of future growth.

Read the full article here.