Private Equity Newsletter
A Fund By Any Other Name: The Convergence of Hedge Funds and Private Equity Funds

Created date


Hedge funds increasingly have been broadening their investment strategies in the past several years. We now regularly see hedge funds holding control positions in major U.S. public companies, acting as activist proponents of changes in corporate strategy, participating in auctions for private equity stakes and purchasing middle-market loans and other illiquid financial assets. Meanwhile, private equity funds have launched hedge fund arms of their own, drawing upon the firms’ extensive research database and investment expertise. It is thus becoming more and more difficult to differentiate between hedge fund and private equity fund strategies, and quite interesting to consider the convergence resulting from these developments.