New York- The growth of hedge funds and private equity firms from small shops into major institutions has broadened their reach across the globe and deepened their old arms-length relationship in the process.
Once viewed as alpha animals trampling distinctly different turf on Wall Street, they now stalk targets together, and the line between them have gotten blurrier.
These days, private equity firms invite hedge funds into certain deals and invest alongside them on others. So-called buyout firms have launched hedge funds, while hedge funds have ramped up buyout investing.
Some bankers say it won’t be long before mergers and acquisitions heat up among the investment funds themselves.
The two sectors are fueling each other’s growth, with buyout funds launching huge takeovers, backed by oceans of debt scooped up by hedge funds.
