Bringing you live news and features since 2006 

Hedgeweek Comment: Hedge funds banking on IPO route


Many hedge fund and fund of fund managers have been analysing the IPO route lately.

Many hedge fund and fund of fund managers have been analysing the IPO route lately. Just four days after fund of hedge funds manager FRM disclosed plans to offer its flagship diversified strategy through a listed fund, Brevan Howard, one of Europe’s largest hedge fund managers, unveiled long-mooted plans to proceed with a London fund flotation that seeks to raise USD500m.

Earlier this year, Marshall Wace announced plans to list its USD2bn MW Tops fund in London, a year after its debut in Amsterdam. And although BlackRock missed its USD500m target for its fund of hedge funds feeder vehicle, it still managed to attract at least USD275m from European and UK institutional investors and wealth managers in an uncertain market.

Why this sudden explosion of IPOs? One reason is easing of the rules for listing on the London Stock Exchange’s Main Market, including a provision allowing dual listings. But mostly fund IPOs are becoming an attractive route for managers to increase assets and diversify their revenue streams.

With increased competition and global uncertainty, a listed vehicle is a good way to capture investor interest. As one hedge fund manager puts it: ‘It is basically a move toward permanent capital.’

The fact that many funds are following the IPO route is an indication that investor interest is out there, which goes to show that even in the current investment climate, well-founded IPOs will attract solid support.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Thomas Bonville, Clear Street
Just over a year ago, Thomas Bonville joined New York-based, prime brokerage Clear Street as managing director, head of derivative...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by