Hedge funds and private equity firms are no longer staying in their lanes and are increasingly jumping between public and private markets.
The convergence of hedge funds and private equity has led to fight for talent as both sides try to pitch prospective employees and investors that they are all-encompassing alternative-asset managers.
It comes as the starting pool for talent in finance continues to dwindle and Silicon Valley siphons Wall Street professionals away.
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As massive companies stay private longer and money pours into the private markets, private-equity firms are booming. Now hedge funds that have traditionally focused on the public markets are getting in on the action.
That’s creating fresh competition for talent as the lines blur between the alternative-asset managers.
Private equity and hedge funds, especially the biggest firms, are looking more like each other. Stock-picking hedge funds like Third Point Management, Tiger Global Management, and Coatue Management have invested in private companies like SoFi, Peloton, and Instacart, for example.
Traditionally, hedge funds have been more liquid and short-term-focused than their private-equity peers, with investors able to pull their money out at the end of each quarter. Private-equity investors are more patient, with the expectation that the strategy …read more
Source:: Businessinsider – Finance