Some hedge fund bosses have converted their firms into family offices, avoiding some of the regulations that come with running third-party money.

John Paulson, the US-based hedge fund tycoon who made a fortune by betting against the sub-prime mortgage market over a decade ago, may follow the lead of other prominent industry figures by turning his business into a family office, reports said. 

The investment luminary reportedly said he will probably decide what to do over the next couple of years. He may run a hybrid business, with one part managing his money and the other running client capital with a profit-sharing arrangement with his partners, Paulson said in an interview on Mike Samuels’ “According to Sources” podcast, according to Bloomberg. 

Paulson’s eponymous hedge fund managed about $8.7 billion at the start of November last year and about three quarters of his money belongs to Paulson personally.

Several hedge fund figures such as George Soros, Steven Cohen and Scott Bommer have taken the route of converting their businesses to family offices. They no longer manage money for outsiders. By doing so, they don’t fall under the US regulatory net. This publication spoke in August 2016 about the phenomenon of such conversions to Citi Private Bank. (See here.)