Business Training.com » term agreements http://businesstraining.com/resources 100,000 Business Resources & Tools Tue, 14 Feb 2012 18:54:33 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Hedge Fund Investors Lock Up http://businesstraining.com/resources/hedge-fund-investors-lock-up/ http://businesstraining.com/resources/hedge-fund-investors-lock-up/#comments Thu, 03 Sep 2009 14:15:00 +0000 admin http://businesstraining.com/resources/?p=9631 Hedge Funds Investors Lock Up

Cerberus Funds Set Strict Lock Ups for Investors

Cerberus is launching two new hedge funds and these funds may bar investors from withdrawing their money for at least 3 years in exchange for lower management fees. Cerberus’ two multi-billion dollar funds will specialize in distressed investments. The use of a lock up period is controversial because investors are unable to take their investment out if the fund starts to do poorly. Yet managers insist that it will be better long-term because it allows a hedge fund to invest without fear that limited partners will take back their pledged capital. Lock ups are employed so that investors do not leave a fund en masse causing it to collapse or sell assets for a low price in a down market. Watch the video here:

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