Private equity and hedge fund deals in the pipline

Bankers are seeking new securities to apply CDO technology to, and lately their attention has turned to private equity and hedge fund of funds. Rob Dwyer explores the challenges of bringing these products to market

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The next few business quarters will be critical for two nascent collateralised debt obligation (CDO) asset classes – private equity and hedge fund of funds. These two products are being hailed as the next big thing in the CDO market, although market observers vary widely in the degree of optimism they feel for each product type.

Private equity CDO deals have already been closed in the private placement market, and there are public private equity CDOs in the market-place. Meanwhile, hedge fund

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