“Zombie Stock Market” and Zombie Funds
“It’s a zombie stock market, pumped up on steroids,” … “I just don’t think it’s a real market anymore.”
And at Reuters: “BUYOUTS-New venture aims at $100 bln ‘zombie’ fund market” by Steve Gelsi:
Merchant bank Kirchner Group and Crestline Investors Inc, a hedge fund secondary buyer with $7.3 billion under management, have teamed up to launch a joint venture aimed at taking over management of so-called zombie funds from their original private equity sponsors. … The universe of U.S. zombie funds – poor-performing private equity funds whose managers have little hope of raising more money – measures about $100 billion in assets… Opportunistic investments include both secondary purchases of LP interests in hedge funds as well as the zombie fund investments. … Among its zombie fund deals, Kirchner Group has taken over management of the renamed Emerald Partners V LP fund.