initial spate of spin-offs has occurred...

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Senior Member

Bigger funds in particular are likely to be the ones to benefit. If banks are forbidden to indulge in proprietary trading, their employees may decide to decamp to the hedge-fund industry. Indeed, bank traders have been typical founders of hedge-fund start-up. But once that initial spate of spin-offs has occurred, where will budding hedge-fund managers be able to prove their mettle?

(This comes from my English reading material and it seems to orginate from

1. Does "spin-offs" here mean "start-ups bank employees found"? (I know "spin-offs" means "a process of reorganizing a corporate structure whereby the capital stock of a division or subsidiary of a corporation or of a newly affiliated company is transferred to the stockholders of the parent corporation without an exchange of any part of the stock of the latter.")

2. Does "budding hedge-fund managers" refer to those bank employees who found their own start-ups?

3. Does the blue part mean "once bank employees found their own hedge-fund start-ups, they will not have business to do"? If yes, why will they have no business to do?

Thanks in advance!
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