Investors, particularly hedge funds, are doing a paltry number of venture capital deals. In fact, only a few managers have made more than one or two investments this month — even after a quiet first quarter.
But hedge funds — especially those that specialize in life sciences and biopharma investments — are active in the post-IPO private placement market. Listed companies use private placements to raise additional capital from accredited investors such as mutual funds. (Securities law requires that these deals be marked at the stock’s closing price when the private placement is completed.) READ MORE