Praise for One Step Ahead
Hedge funds are being punished, and private equity is getting abuse, for things they did not do merely because the politicians do not understand them. One Step Ahead explains in simple language what hedge funds and private equity are all about and why they should be left alone to manage wealth and create wider prosperity.
Eamonn Butler Director, Adam Smith Institute
This is a book for people looking for deep understanding and careful analysis, rather than empty sloganeering and yet it will be immediately accessible to the average reader, which is a remarkable accomplishment.
Robert VerBruggen Editor, RealClearPolicy
Bringing shadow banking out of the shadows, One Step Ahead sheds light on alternative investment funds and their role in the economy. Spangler, who understands the nuts and bolts of hedge funds and private equity in the US and European contexts, gives the general public knowledge, which is power, to grasp their role in our economic future. The lines that distinguish one alternative investment fund from another are anything but bright. One Step Ahead identifies some growing trends among hedge funds and private equity funds and the regulatory hurdles ahead for such funds due to new legislation, and outlines why we should care.
Noreen Clancy Senior Project Associate, RAND Corporation
Like a series of exceptional New Yorker articles, One Step Ahead provides a detailed and engaging insiders view of the seemingly-secret world of alternatives from every perspective birth to death, rumor and myth to simple truths, and whys and wherefores. Practitioners and investors alike should get their hands on this book ASAP.
Karyn Polak Deputy General Counsel, PNC Financial Services
One Step Ahead is an excellent insight into the structure and workings of the pointy end of capitalism, the hedge fund and private equity industry. From a true insider, One Step Ahead introduces us to the main players, the rules under which they play, and the politics of how those rules come about. Written in a very readable and accessible style, this book should be read by anyone wanting to learn more about this important and politically contentious sector.
Professor Julia Black London School of Economics
Timothy Spangler, with One Step Ahead, has presented a long-overdue synthesis of the economic, legal and political issues surrounding the world of hedge funds and private equity. Spangler fills a gap in the literature and provides the right balance of technical detail and high-altitude perspective needed by investors, lawyers, and policy-makers looking for the big picture in this field.
Dr Tom Grant Senior Research Fellow, University of Cambridge
A lucid, inside account of how hedge and private equity funds work and their economic and social utility, with wider reflections upon the context of the political economy. A demystifying read for the intelligent layman.
Dr. Iris H. Chiu University College London
When so much of the debate around our financial system is clouded in misunderstanding, it is refreshing to read such an engaging and accessible account as One Step Ahead. By setting out the facts clearly and cleanly, Timothy Spangler goes beyond the jargon and the headlines to give readers an accurate portrayal of the role of private equity and hedge funds in modern capitalism.
Mark Florman Senior Adviser to MCF Corporate Finance
One Step Ahead expertly combines an insiders understanding of behind-closed-doors industry dynamics with an everymans ability to tell the story in a way that a Main Street reader will understand and appreciate. By focusing on the pointy end of modern capitalism, Spangler tells a tale that is relevant and educational to us all.
Robert Diamond Fernbrook Partners
One Step Ahead opens up the opaque world of hedge and private equity funds with precision in an accessible way for the non-specialist. Complex technical issues are conveyed concisely but never over-simplified A fascinating read and some surprising, sometimes shocking, conclusions.
Giles Adu Managing Partner, Brook Street Partners
Finally a book that sheds a knowledgeable light on the private equity and hedge fund worlds. Long demonized by the media, Timothy Spangler has humanized these often secretive industry sectors all the while revealing just how essential they are for nursing sick companies back to health and bringing rationality to markets.
John Tamny Political Economy Editor, Forbes
The ravages of the financial crisis, and the bruising Presidential campaign in 2012 for which it served as backdrop, have catapulted the alternative investments industry into the public consciousness. Spangler provides a comprehensive account of the issues surrounding the industry, invaluable to anyone wanting to cut through the political point scoring and amorphous resentment that have characterized the debate to date.
Solomon Teague Financial Journalist
One Step Ahead gives a clear, practical and realistic insight into the private equity industry today, in contrast to the pre-conceptions, clichs and sound-bites about private equity that have been sensationalized in the popular press this book provides an important voice in seeking to balance the political debate where the industry itself has struggled to do so.
Aristide Stavropoulos Ridgeway Capital LLP
Timothy Spangler has written a masterful and comprehensive overview of hedge funds and private equity pre- and post-crisis. Very well written and accessible, One Step Ahead is required reading for anyone wanting to understand the challenges and limitations of regulation and enforcement.
Alistair Macnaughton Chief Legal Officer, Mulvaney Capital Management Limited
ONE STEP
AHEAD
Private Equity and Hedge Funds
After the Global Financial Crisis
Timothy Spangler
A Oneworld Book
First published in North America, Great Britain and Australia by Oneworld Publications, 2013
This updated ebook edition published 2016
Copyright Timothy Spangler 2013, 2016
The moral right of Timothy Spangler to be identified as the Author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988
All rights reserved
Copyright under Berne Convention
A CIP record for this title is available from the British Library
ISBN 978-1-78074-922-8
eISBN 978-1-78074-938-9
Typeset by Cenveo Publisher Services, India
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For my wife, who only after a few years of marriage realized the important difference between a hedge fund lawyer and a hedge fund manager, and for any young women of marriageable age today who consider this distinction significant.