Private Equity and Hedge Funds: The Shadow Capital Market

Private equity firms and hedge funds have seen stellar growth over the past decade, riding the wave of easy credit and eager investment pools. Together, they have represented a shadow capital market, providing investors an alternative for investing and trading, and in the case of private equity offering businesses access to capital. But in the aftermath of the credit crisis lays deep trouble for these firms, as the deleveraging of the global economy removes a vital ingredient to their success.