A leading international investment bank, Madison Street Capital, released a report detailing transaction activities as well as available M&A prospects in the hedge fund industry. The report highlighted that the investment bank managed to close 42 hedge fund deals last year. This was an increase of 10 transactions compared to the 32 transactions undertaken in 2014. In addition, AUM, which measures the volume of transactions, registered a 27% increase in 2015 relative to 2014. Experts in the industry believe that 2016 shall be a profitable year given the deal momentum as enhanced by increased transactions towards the fourth quarter of 2015.
In 2016, assets in the industry have registered success despite the below average performance of the hedge fund strategies recorded in 2014. In order to have higher required returns, most investors are diversifying their portfolios to varying alternative asset management sector. These investors hope that they will be able to match their returns with liabilities. Most managers running small hedge funds are not in a position to operate at their optimal portfolio capacity levels because they are unable to attract new clients. These managers are also incurring astronomical operational costs and are under extreme pressure to lower their fees. To this end, most managers have been forced to reconsider strategic alternatives.
According to Karl D’Cunha, the deal environment has registered impressive improvement in 2016 as compared to 2015. Karl continues to asset that different deal mechanisms are being deployed to incorporate the needs and preferences of buyers and sellers. Karl posits that the hedge fund industry is highly fragmented. This way, more consolidations will continue to take place, especially formation of partnerships that are geared towards bridging distribution to provide a range of product offering. Karl is a senior managing director at the Madison Street Capital. This information was originally mentioned on PR.com as highlighted in the link below http://www.pr.com/press-release/657365
About Madison Street Capital
Madison Street Capital has employed the services of professionals that have vast experiences, extensive relationships and remarkable knowledge. This way, the firm has become a premier investment bank in the globe. The company specializes in corporate finance as well as providing advisory services regarding mergers and acquisitions. The experts employed by the firm are in a position to arrange capitalization structures and appropriate financing based on the specific needs of the clients.
The headquarters of the investment bank are located in Chicago, Illinois. The company has offices in Asia, Africa and North America. Owing to its many years in the industry, Madison Street Capital is able to offer a wide variety of services that include restructuring services, hedge funds, valuation as well as corporate advisory services and financial opinion services. Since its inception, the investment firm has assisted many clients in broad range of industries. This information was originally reported on Madison Street Capital’s website as explained in the following link http://madisonstreetcapital.org/
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