WSJ News Exclusive | Hedge Funds Increase Bets on Private Companies

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Hedge funds are stepping up their presence in what has emerged as Wall Street’s hottest area: investing in private companies

Lone Pine is increasing to 15% from 5% the amount its hedge fund and long-only fund can invest in private companies, with investors opting into the increased exposure. Flight Deck Capital LP, a San Francisco fund started by Jay Kahn, launched May 1 with $250 million and the ability to invest a quarter of its assets under management in private companies. Mr. Kahn previously led or co-led most of the private investments at Light Street Capital Management and also invested in public companies.

Fund managers say that they are being selective about which companies they back and that liquidity in secondary markets has increased in recent years. A person familiar with the deals said the fees reflect the scarcity of such investment opportunities for wealthy individual investors.

 

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Lol so basically they’re PE funds

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Hedge funds should not be allowed to exist.

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