A Canadian private equity fund has bought its seventh holding in a hedge fund as alternative investment firms continue the rush to sell stakes in themselves while high valuations are the rule.

Canada's Proctor Investment Management took a 17.5% stake in Conquest Capital Management, but did not disclose the amount. Proctor is an 18-month-old private equity group that invests in hedge funds and alternative asset managers. It contributed to seven firms before Conquest, and four of those have been equity investments, said Jim Coley, Proctor's chief executive officer.