The role of hedge funds has expanded substantially in the past decade. Estimates suggest that roughly 8,000 to 9,000 hedge funds existed by 2008, with approximately $1.8 trillion in funds under management.1 Hedge funds typically raise capital from institutions and individuals with substantial means. Since the market crisis of 2008, many of these individuals have been unhappy with the performance of their hedge fund investments. Furthermore, they have been frustrated with their inability to redeem their initial investment.
The author of this article believes that individuals holding hedge fund investments have an unusual opportunity to transfer wealth to their children while minimizing transfer taxes. With the potential for significant valuation discounts and the possibility of a rebound in returns, these individuals may be able to make lemonade out of lemons.
Market Collapse
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
