Thursday, July 5, 2012

Back from dead: PE firm sucks fees from ‘zombie’ fund





From the N.Y. Post: A New York private-equity firm has found a creepy way to revive one of its near-dead funds.  Behrman Capital is forming a new fund with a six-year life span to buy out an old $1.2 billion fund it closed back in 2001.

The move will allow the firm, founded by brothers Darryl and Grant Behrman, more time to sell out its remaining investments and collect fees and commissions.

Behrman is venturing into a graveyard of “zombie funds” whose time has run out. Rather than let them die, some PE firms are looking at novel (some say horrifying) ways to resurrect the aging funds and continue to profit from them…

Read all about it at http://www.nypost.com/p/news/business/back_from_dead_v3YV9N4gH4weomo4gson7J

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