Reuters – The increasing presence of hedge funds onto private equity turf works in favor of buyout funds, Thomas Lee, the billionaire, founder and namesake of private equity firm Thomas H. LeePartners, said on Wednesday.
“I think you will see more hedge funds and private equity firms working together,” Lee told Reuters on the sidelines of a Dow Jones Private Equity Analyst conference.
“Not only do hedge funds supply money to companies, but activist hedge funds tee-up companies for private equity.”
Hedge funds have become key corporate lenders and have helped gobble up private equity-backed IPO shares.
Activist hedge funds have agitated for change at companies, putting them in play and up for sale for private equity firms to buy.
Lee declined to give details on his departure from THLee Partners, the private equity firm he founded, or on his future plans, saying only that he expected to have more details in the “next week or two.”
