New York Life Investments has signed an agreement to acquire a majority stake in Private Advisors, LLC, a fund of hedge funds manager based in Richmond, Virginia with $3.9 billion in assets.
Private Advisors is led by founder and managing partner Louis Moelchert, Jr, who prior to the creation of the firm managed the endowment for the University of Richmond for over 25 years. The endowment first put money to work into alternative investments in the early 1980s.
The deal is yet another example of consolidation in the hedge fund industry as the very largest firms continue to attract the bulk of new money. Industry observers say pension funds and endowments feel more comfortable investing alongside their peers in firms backed by large financial institutions.
In the second quarter, nearly all of the $23 billion of new money that entered the industry went to firms with more than $5 billion of assets under management, according to data from Hedge Fund Research. These firms now control about 60% of the total industry capital
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