Madison Street Capital is a very busy firm. The company may end up becoming even busier in 2016. Per its report, the hedge fund world is poised to experience a resurgence.
Recently, Hedge Week published an article about a report produced by Madison Street Capital on the 2016 outlook on mergers and acquisitions (M&A) related to hedge funds. (The official title is the “Madison Capital’s hedge fund industry M&A overview”) The prior years for hedge funds revealed some interesting figures. 2015 saw a tremendous increase in transactions over 2014. The increase was 27% higher than the prior year, and this is an impressive number.
A tremendous number of transactions occurred in the final quarter of 2015. This means quite a bit of momentum may carry right into 2016. Interestingly, 2015 was not a banner year for hedge funds. The final months of the year did show more activity than was expected. As a result, many are primed for a great 2016.
The words put forth by Madison Street Capital should be taken seriously. The Chicago-based company has been a major player in the investment banking world since its founding in 2005. The M&A advisory services made available by Madison Street Capital are highly regarded in the industry. Upon learning this information, many are going to look at that Hedge Week article very closely. It highlights a number of interesting points presented in the report.
In the report, it was noted that the hedge fund industry maintains assets at a supremely high level. This is the case even those most hedge funds did poorly in 2015. A shift to the alternative asset management sector by institutional investors is being undertaken with the hopes of overcoming perceived and actual liabilities.
Madison Street Capital is poised to make news in 2016. Some of the news may turn out to be how brilliantly prophetic the report was.
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