Your new bankers: hedge funds
An article on Hedge Funds and how they are starting to back small companies.
Growing companies could be tapping into a new source of capital in 2007: Hedge funds are getting into the private-equity business. And although some are investing in largeor similar institutional funds, other managers are hitting the VC breakfast circuit in search of direct investments.
Hedge fund Managers have always had the freedom to invest 10 percent of their fund, known as a "side pocket," in illiquid assets. Traditionally they've chosen real estate or big energy companies. But lately they've been looking at more creative outlets, including small growth businesses.