LONDON (Reuters)- The collapse of hedge fund Peloton last week is unlikely to be the last in the $2.5 trillion (1.2 trillion pound) industry as credit conditions tighten.
London-based Peloton Partners, which had held nearly $3 billion in assets, is liquidating its two funds, the firm told investors last week — a failure which is symptomatic of problems across the industry.
Lenders are keen to avoid further losses and are turning the screw on the once-booming hedge fund industry, which relies on credit to finance its investments.
"If this type of environment continues, it’s likely that there will be more funds going down," said Odi Lahav, head of Moody’s European Alternative Investment Group.
