The U.S. House of Representatives recently passed a little-noticed bill that could make it a lot easier for hedge funds to attract money from pension plans. The consequences could be meaningful, as pensions are by far the largest investors in hedge funds.
“It’s a significant proposal. It would make it easier for hedge funds to raise substantial amounts of capital from pensions,” says William A. Schmidt, a partner at law firm Kirkpatrick & Lockhart Nicholson Graham. “It is perceived as very good news by the hedge fund industry.”
Although only a few hedge fund institutions lobbied for the bill, most are very supportive of it, another lawyer says.
The bill would also apply to funds of funds.
