HEDGE INVESTMENT FUNDS AS A TOOL TO REDUCE RISK OF BANKING INVESTMENT LENDING

To be the way of reducing risks of bank investment lending, the paper considers the feasibility of involving a third party to that process limiting the bank’s participation by the mediator role. The author studied the experience of foreign hedge funds activity playing the prominent role in the function of such mediators and considered the feasibility of hedge funds using in Russia as one of the most promising types of investment lending. The paper discusses the necessity of using hedge investment funds to finance investment projects, develops the mechanism of interaction of hedge investment funds and commercial banks when financing investment projects, and defines the place of hedge investment funds in the financial market between the venture capital funds and unit investment funds. The author considers the lending to the enterprises’ development as the main objective of hedge funds and defines that such lending can be done in various forms – traditional loans, the purchase of debt securities, and the investment in capital. When lending, the main condition should be that the goal of lending is to use money received from funds for the effective development of a company through the implementation of innovative projects, entering new markets, modernization, and the expansion of production. The author developed the organizational chart of hedge funds functioning in Russia based on the partnership of a bank and private investors. In order to avoid the securities open trade, the author proposed to forbid hedge investment funds to hold shares of the enterprises in their portfolios less than for one year. The author proves the feasibility of the creation of a stock exchange for investment projects. Created in the form of a non-profit organization, the exchange will accumulate all necessary technical and financial information and the proposals of the enterprises (the investment projects). Data on the project duration, its sphere of implementation, the desired investment amount and the brief description of the project will be available for public access. Hedge funds – the exchange participants will be able to get the access to all documentation relating to the project implementation, subject to compliance with the commercial confidentiality requirements.