Burke McDavid Quoted in Opalesque on Texas Hedge Fund Market
Burke McDavid, a partner in Akin Gump’s investment management practice, is quoted in the Opalesque article “Hedge fund launches top 100 in Texas.”
The article is based on information gathered at the recent Opalesque Texas Roundtable, which took place at Akin Gump’s Dallas office. Attendees cited the tax environment as well as the robust local economy as reasons for the spate of new growth in hedge funds in Texas last year.
Regarding the type of funds being launched, McDavid said, “We see predominantly long/short hedge funds launching, but also credit, direct lending, and more recently with the drop in oil prices, energy-focused high yield debt or credit funds.”
Texas, according to the article, presents significant cost savings for fund managers over other locales, like New York and London, the article notes. Still, emerging managers have seen new hurdles before and after launch following the Great Recession, and McDavid adds that investors “are becoming more sophisticated and inundated with opportunities, making capital raising that much more difficult.”