Plainfield Asset Management is a defunct

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

that specialized in managing investment capital on behalf of institutions and

high-net-worth individuals In the financial services industry, a high-net-worth individual (HNWI) is a person who maintains liquid assets at or above a certain threshold. Typically the criterion is that the person's financial assets (excluding their primary residence) are ...

. The firm worked with clients in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

and abroad, and maintained offices in

Greenwich, Connecticut Greenwich ( ) is a New England town, town in southwestern Fairfield County, Connecticut, United States. As of the 2020 United States census, 2020 census, it had a population of 63,518. It is the largest town on Gold Coast (Connecticut), Connectic ...

before transitioning to its disaster recovery site in Stamford, CT. At the end of May 2012, Plainfield substantially completed the liquidation of the funds which it managed and deregistered.

History

Plainfield was founded in 2005 b
Max Holmes
the former Head of the Distressed Securities Group and a managing director of D. E. Shaw & Co., L.P.Company Websit
"Plainfield Partners: Max Holmes"
January 22, 2011

Hedge Fund Lending

On June 8, 2011, The New York Times ran an article discussing the trend of hedge funds lending money to businesses who have been unable to secure loans from traditional lenders. In the article, Max Holmes warns of the dangers hedge fund may find themselves in when engaging in this practice, “The new funds rushing into direct lending now will learn the hard way that it is easy to make what appear to be sound loans as the economy is improving, but it becomes brutal to either collect the loans or foreclose when the downturn comes.”

2008 performance

According to ''

Fortune Magazine ''Fortune'' (stylized in all caps) is an American global business magazine headquartered in New York City. It is published by Fortune Media Group Holdings, a global business media company. The publication was founded by Henry Luce in 1929. T ...

'', “By the end of 2008, 93 percent of Plainfield's assets were illiquid -- and Plainfield was compelled to prevent investors from leaving.” Benner, Kati
"The smoldering hedge fund"
"Fortune Magazine", January 25, 2010 According to the same article: Plainfield's flagship fund witnessed 21.5% decline in 2008. Following the firm's deregulation and liquidation, investigations into lending practices conducted by the S.E.C. and Attorney General's office were concluded and, according to HFM Week, the firm received a letter from the SEC indicating its investigation was concluded with no action to be taken.

Notes

{{Reflist Financial services companies established in 2005 Hedge fund firms in Connecticut Asset management companies