Zombie Fund Glut Bad For LPs, Good For Bargain Shoppers

Law360, New York (June 14, 2013, 8:47 PM EDT) -- More than $116 billion is tied up in funds well past their “sell-by” date, new data shows. That may be bad news for their investors, but experts say it's good news for bargain hunters in the secondary market.

According to industry tracker Preqin Ltd., some 1,200 funds are beyond their intended life spans, holding stakes in more than 1,700 companies with little hope of an exit. Their sponsors have not raised follow-on funds, and have returned just 40 percent of capital back to investors, Preqin found....
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