Apr
20
When Hedge Funds Become Family Offices
ByFor a number of reasons, some hedge funds are returning outside capital and adopting the legal structure of a family office to run their own monies. What is telling is that many of these private investment companies are having some difficulties when they seek to expand the services they provide beyond money management.
Regulatory considerations, investor pressures, and operational costs are often contributing factors in motivating some hedge funds to shed outside investors and adopt a family office structure. While this is happening more frequently, it is not pervasive throughout the hedge fund industry…