Balyasny Asset Management told clients it will lock up their money for two years, as the hedge fund joins the parade of peers in extending how long they can keep investors’ capital.
(Bloomberg) — Balyasny Asset Management told clients it will lock up their money for two years, as the hedge fund joins the parade of peers in extending how long they can keep investors’ capital.
The changes will take effect Sept. 1, according to an investor. Currently, an undisclosed percentage of clients may pull 25% of their money every quarter.
Starting in April 2024, the fund will limit quarterly withdrawals to 8.3% for new money, meaning it would take three years to fully exit the fund. A spokesman for the firm, co-founded by Dmitry Balyasny in 2001, declined to comment on the changes.
More investors are flocking to funds that manage money using multiple teams, as Balyasny does. Those funds are the fastest-growing in the industry and now account for more than $300 billion of its $3.5 trillion of assets.
Balyasny told its clients that locking up capital helps it to attract top talent and invest in infrastructure such as technology. It had already stopped taking new money in the yearly share class in January 2022.
Izzy Englander’s Millennium Management recently completed a plan to extend its full redemption period to five years from one, citing similar reasons. It can take investors in Ken Griffin’s Citadel as many as four years to completely cash out.
Read More: Millennium Returns $15 Billion, Cementing Move to Long-Term Cash
Balyasny oversees about $20 billion, up from $11 billion in early 2018.
(Updates with withdrawal terms in third paragraph.)
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