Madison Street Capital recently released its annual edition of the hedge fund industry Mergers and Acquisition overview. The 2016 report is the 4th edition release that highlights all transaction activity in the hedge fund industry as well as M&A opportunities.
In the report, Madison Street Capital found out that there were 42 closed deals in the global hedge fund industry in the year ended 2015. This was an increase from the 32 deals closed in 2014. In addition, the total transaction volume for 2015 was 27 percent higher than 2014. The difference was largely propelled by increased activity within the final quarter of 2015. Due to this increased momentum and high rate of activity, the company predicts that 2016 will be a good year for the hedge fund industry and M&A transactions.
Key Details of the Report
In the report, total assets in the hedge fund industry are currently quite high. This is despite that fact that the industry saw dismal performance in the year ending 2015. In a bid to match increasing liabilities, many institutional investors are divesting their funds with allocations to alternative asset management. This sector provides some hope for higher returns. At the same time, managers are facing higher operational costs and increased pressure to decrease fees. Therefore, many managers have been forced to seek other alternatives to stay in business.
Madison’s senior MD Karl D’Cunha said that there were many hedge fund deals that were closed in 2015 with many more closings expected in 2016. He added that the deal environment is structuring itself to accommodate not only sellers but also buyers with signs of a favorable working environment in 2016. Other transactions that are expected to happen include seed financing and incubator deals, PE bolt-ons and stakes as well as revenue-share stakes. Finally, the hedge fund industry will become more consolidated in 2016 with many opportunistic partnerships beginning to shape up.
About Madison Street Capital
Madison Street Capital offers financial and advisory services to many private and public businesses. The company operates globally providing clients with strategic advice and alternatives on how to invest their money. It has a lot of experience in various financial endeavors and transactions with a wealth of information about the global financial industry.
The firm mainly assist clients with asset financing, financial restructuring, hedge fund management, portfolio valuation as well as advice on mergers and acquisition deals. Since its inception in 2011, the Chicago based company, has grown rapidly under an excellent management team. Today, it is an industry giant with a lot of experience and authority in the M&A and hedge fund industries.
The company is dedicated to helping clients build strong businesses. In addition, the company has been involved in many philanthropic activities to help build stronger communities locally and internationally. It currently supports United Way organization.
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