When times get tough, hedge funds executives go shopping. For talent, that is.
For the past few quarters, clients of hedge fund specialist recruiter Alpha Search Advisory Partners LLC, Roslyn, N.Y., stopped searching for solo portfolio managers and started asking about whole team liftouts, said Anne Gregg, Alpha Search's director, advisory services, who heads the firm's new hedge fund consolidation service.
Larger, institutional-quality hedge funds and funds of funds are looking for smaller hedge fund teams to diversify their investment roster. But given the independent nature of hedge fund managers, dropping a close-knit investment team into an established firm without plenty of planning would be about as successful as herding cats. Using an independent party to find potential targets, make introductions and smooth the integration improves the chances of success. And that's where Ms. Gregg comes in with expert talent analysis. “The asset here really is the people and you have to really understand them to pull off a great deal,” Ms. Gregg said.
Alpha Search has not yet closed a deal using the hedge fund consolidation search, but she noted that several clients are in advanced negotiations. — Christine Williamson