More hedge funds to tap capital markets?

The KKR move to become a publicly traded company throws the spotlight, once again, on alternative investment companies and the public markets. We may see more private equity companies try to somehow follow suit. The case for more hedge funds tapping the markets seems even more compelling. Financial News Online notes a recent Celent study that found more hedge fund firms seeking permanent capital to get through the fallout from the ongoing credit crunch. The fact is that prime brokers haven't exactly turned the leverage spigots back on, and it's unclear if they ever will. So more might follow Citadel, which became the first hedge fund firm to issue bonds in 2006. Others will seek to follow the likes of Man and Fortress and become public companies. While the benefits of a public offering are obvious, it's unclear whether investors will readily snap up such issues. At some point, hopefully sentiment will change.

For more:
- here's the Financial News Online article

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