Are the edges blurring between private equity and hedge funds?
Private equity and hedge funds are often conveniently lumped together into the category of alternative assets, along with property. However, there has tended to be a blurring of the distinctions since some private equity firms have started looking at branching into hedge funds as part of a wider asset management brief for their clients. The appeal for private equity firms is that hedge funds can provide them with a much more stable income stream. Some hedge funds also look at private equity as a way of getting arbitrage in the unquoted markets, through innovative structures. Texas Pacific Group, one of the largest US houses, is thought to be involved in a new hedge fund venture.
