D.E. Shaw extends hedge fund lock-ups to four years

The $90 billion quant giant has lengthened withdrawal periods to as long as four years in its flagship multi-strategy funds, making it harder for investors to pull capital quickly. The move follows the firm's 9.6 percent return in 2023 and comes as large hedge funds tighten liquidity terms to match increasingly complex, less liquid strategies. D.E. Shaw paid a $10 million SEC penalty last year for using employment agreements that impeded whistleblower complaints. Extended lock-ups give managers more stable capital but reduce investor flexibility, especially concerning given recent governance issues.