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It's important to note that this is not an IPO of Bill Ackman's well-known Pershing Square hedgefund, which owns stakes in companies such as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Chipotle (NYSE: CMG). Rather, Pershing Square USA will be a new closed-end fund. annualized) since its Jan 2004 inception. annualized).
Private equity firms use this method opportunistically to invest in public companies, typically taking non-controlling stakes. Unlike in buyout deals, minority stakes limit two key return levers: leverage and operational control.
Continuation funds will become more popular as a way for managers to exit investments without selling at depressed prices. Feestructures may change, with pressure on public companies to reduce management fees and focus on performance-based compensation.
The video from last week’s panel is above Bloomberg Masters in Business host Barry Ritholtz discusses the current environment for hedgefund launches with IDW Group Founder and Chief Executive Officer Ilana D. Mike Rockefeller is co-founder of the six billion dollar long short equity fund Woodline Capital. Is that right?
The transcript from this week’s, MiB: Ilana Weinstein Discusses the HedgeFund War for Talent , is below. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ Ilana Weinstein on the War for Talent at HedgeFunds (Podcast) ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio.
Barry Ritholtz] : 00:22:58 [Speaker Changed] IQ is table stakes. So, so your feestructure is very different when you outperform the market. You take a performance fee based on that outperformance above beta. 00:24:31 [Speaker Changed] We refund the fee. It’s like, can you answer this puzzle?
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