Archive for the ‘Sovereign wealth funds’ Category


Pricing Risk for Hedge Fund Illiquid Assets

At Shelley capital, we take the view that the current debt crisis and economic slowdown could make the pricing of illiquid hedge funds assets more difficult and lead to delayed/reduced cash flow realisations. Against this uncertain climate, clients might consider transacting on the secondary market of hedge funds while they can.

Some forced selling might be on the cards in order to secure cash in hands now and not risk uncertain price realisations in three or four year’s time. A prolonged period of turbulence would negatively impact the pricing of illiquid hedge fund assets for a number of reasons:

  1. Cash-flow expectations may be significantly reduced, resulting in lower IRRs for buyers at current prices.
  2. An uncertain macro backdrop would exacerbate the inherent difficulty of valuing hedge-fund secondaries.  Additional provisioning at fund levels might therefore crop up.
  3. All classes of hedge-fund illiquids will be affected.  The PE features of most side pockets, for instance, make them directly correlated to the corporate sector, while ABL funds would suffer similarly from deteriorating credit conditions.

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GAIM USA Conference

On 20th January 2011, Pascale Alvanitakis-Guely, co-founder of Shelley Capital, addressed an audience of hedge fund investors, managers and industry experts at the prestigious GAIM USA conference in Boca Raton, as a speaker on the secondary market panel. The discussion shed light on the opportunity for secondary market participants and the current trends in supply and demand. For more information please follow the link:

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Website launch

Exciting news! We’ve just recently launched our new website! Over the past few weeks we’ve been working very hard at getting our new website up and running.

We wanted a site that reflected our brand and values and portrayed our services clearly. We hope you find our website useful and informative.

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