A leading international investment banking firm, Madison Street Capital, recently released its hedge fund overview for the year 2015. The company reports that globally 42 hedge fund deals were executed in 2015, up from the 32 transactions in 2014. Transaction volume measure by AUM was up 27 percent over 2014. After a flurry of fourth quarter transactions, key drivers indicate that there will be a record year of transactions in 2016.
Despite only mediocre performance levels, hedge fund assets are at an all time high. Institutional investors are putting capital into alternative assets with the hope of achieving higher returns. However, smaller hedge fund managers are having a hard time attracting new capital, causing them to operate below desired capacity levels. In an overview, the company learned a good number of managers are facing higher operational costs, and a down turn in gaining adequate fee generation.
Madison Street Capital says the deal environment for hedge funds was healthy in 2015 and should be greater in 2016. Deal mechanisms have been put in place that will accommodate both sellers and buyers. Aside from traditional M&A deals, seed and incubator deals are being made. Predictions are that the fragmented hedge fund industry will consolidate more in the coming months.
Madison Street Capital is a firm that offers a full service approach to financial advisory and strategic investment on a global basis, They employ specialists to advise hedge fund and other asset managers on M&A deals.
Madison Street Capital has a particular interest in working with middle-market companies as they navigate their way through very complex transactions. The company’s expert team of professionals will be there to guide clients to a successful outcome.
Madison Street Capital has aided clients in hundreds of industry verticals achieve success in a short period of time. Being highly qualified in assessing corporate governance has put the company at the top of the heap in their industry. They have offices in North America, Asia, and Africa.
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