Bankers say more hedge fund listings in pipeline

Date: Friday, January 5, 2007

From the FT: ....“Everyone is interested,” says one British banker who advises hedge funds on going public. “These initial public offerings are seen as the next phase in the evolution of hedge funds.”

...In the past year more than five groups managing a range of hedge funds and alternative assets – including credit and emerging markets specialists BlueBay Asset Management, Ashmore and Charlemagne Capital – have floated in Europe. These may be small businesses, say bankers, but other listings are in the pipeline.

Next month Fortress, the US private equity and hedge fund manager, is floating shares in New York. It will dwarf its UK counterparts but like them claims its goal is to create a long-term institution that will outlive the founders, generate capital to launch new investment products, make acquisitions and be able to attract and retain talent. Fortress will be the first US hedge fund manager to list but bankers expect other alternative asset managers to follow. “I’d be very surprised if we don’t get another five this year and it could run at these levels for years.