Reuters.uk – Big fund management companies are looking at ways to move into distressed debt trading, an area dominated by hedge funds, as a new alternative asset class option for institutionalinvestors, industry figures said.
These big fund management firms were likely to add distressed debt trading to their product lines, mainly by company acquisitions rather than start their own operations, they said.
“The next best thing (to starting a business) is to buy one of these boutiques…That is something that is easy for them to do,” Amin Rajan, chief executive of financial consultancy and research firm Create, told Reuters.
Rajan said the moves may follow the lead set by Anglo-American asset management company Amvescap, which recently bought W.L. Ross & Co.. a firm that specialises in distressed debt and company restructuring.
