Thursday, May 31, 2012

Warning: Investor Hazard: 'Zombie Funds'




 Talbot Hall, a New Jersey facility that prepares prison inmates for release, drew an investment from a private-equity fund 16 years ago.  According to a WSJ report today the investment sits in a "zombie fund": a near-dead fund that ties up investors' money and continues charging them fees even as hopes of profiting from its remaining assets have faded.

It is a little-known horror show in the investment world. Of the roughly 10,000 private-equity funds raised over the past decade, at least 200 now qualify as zombie funds, accounting for as much as $100 billion of the $1.5 trillion currently invested in these vehicles, according to.....

Find out more at http://online.wsj.com/article/SB10001424052702304444604577339843949806370.html?mod=WSJ_article_forsub

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