Funds Hub

Money managers under the microscope

Embracing opportunities

March 17, 2009

The financial industry is famously flexible. Previously held shibboleths can be ditched in the blink of an eye to be replaced by more appropriate, and profitable, assumptions.

hhdealpic1And so it is that hedge funds have embraced restructuring culture. No longer is there shame in distressed assets, forced sales and dried up liquidity. In a time when going to the wall is an everyday occurrence, the smart money, and the optimism, comes from finding opportunity in straitened times.

Earlier today hedge fund pros gathered for breakfast with lawyers for KattenMuchin, to hear a presentation about “Corporate and Fund Restructurings”.

Liquidity issues and closures are not “news for anybody” we heard, before an informative, upbeat run-through of the issues associated with spin-outs, acquisitions and consolidations. Downturn issues like MAC clauses, retaining key staff and re-setting benchmarks all figured highly.

So, put the stigma to one side, don’t just hope to ride out the storm, now is the time to get involved with the great restructuring.

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