Salient to Investors: Charles Morrison at Altus Partners there are still many more candidates than jobs. Hedge Fund Research said poor returns and difficulty raising money caused 873 hedge funds to liquidate globally in 2012, the most since 1,023 closed in 2009. John Purcell at Purcell & Co said smaller firms
READ MORE... →Salient to Investors: US buyout firms are playing an increasingly larger role in the U.K. housing market. US private-equity investors Wilbur Ross and J. Christopher Flowers are lining up to finance British homebuyers as the country’s biggest banks pull back. The Council of Mortgage Lenders says RBS, Lloyds Banking, Barclays, HSBC and Santander U.K.
READ MORE... →Salient to Investors: The 2008 financial crisis cost US endowments 23 percent of their value on average in F2009. Commonfund and NACUBO said fund values fell 0.8 percent in the year ended in June 2012, and gained 18 percent a year earlier. Nick Cavalla at Cambridge University said US colleges, including Harvard, Princeton and
READ MORE... →Salient to Investors: 4,500 private equity firms manage $3 trillion in assets. Preqin said as many as 708 firms face deadlines through 2015 to replenish their funds for future deals to avoid reduced fee income when the investment periods on older funds run out, typically after 5 years. Preqin said many venture capital
READ MORE... →Salient to Investors: Wilshire Associates said: Big government-employee pensions reported median returns of 13.43 percent in 2012 versus 12.47 percent for funds with over under$1 billion in assets. State and local pensions with under $1 billion of assets had a median allocation of 10.6 percent in international stocks and zero
READ MORE... →Salient to Investors: Commonfund and the NACUBO said US university endowments lost on average 0.3 percent in the year ended June 30 after gaining 19.2 percent a year earlier. Over a third of the schools reported receiving less in donations than a year earlier. Harvard’s endowment fell 4.1 percent, Yale’s less than 1
READ MORE... →Salient to Investors: Private-equity firms, struggling with slumping demand for IPOs are instead turning to private-to-private sales as a sluggish economic recovery saps demand for IPOs. Global IPOs fell in Q3 to the second-lowest level since the financial crisis. Private-equity returns are falling. Secondary deals don’t bring the payoffs from IPOs or sales to
READ MORE... →Salient to Investors: The flood of foreclosures predicted by experts two years ago has failed to materialize. Instead, the number of properties for sale shrank to the fewest in a decade, prices appreciated at the fastest pace since 2005, and the gradual healing of the housing market helped boost consumer confidence
READ MORE... →Salient to Investors: Investors are growing wary of publicly traded securities as interest rate cuts at central banks helped inject liquidity into markets, bolstering bonds and stocks. Scott Kalb at KLTI Advisors said: Sovereign wealth funds are increasing their allocations to alternatives Institutional investors are focusing on hedge funds and private
READ MORE... →Salient to Investors: Large investors are increasingly seeking separately managed accounts with better terms than the others. Regulators are concerned that a manager may evaluate the same investment for a pooled fund and a separately managed account but protect the favored large investor from due diligence costs if the deal falls through. Regulators are examining whether managers
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