A word on the side (pockets)

tete à tete: side pockets

Legal practitioners note the managers of up to 30% of new funds coming to them are enquiring about side pockets for illiquid investments, presumably to get involved in areas such as private equity. Side pockets' use immediately raises questions of a liquidity mismatch in a portfolio, and what happens when investors who entered a fund of liquid instruments are left, after sell-off, with a larger portion of assets stuck in a side pocket? While all lawyers counsel putting the ability to have

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: