In an article by PR.com, one of the internationally leading investment banks, Madison Street Capital has reported a tremendous performance for the year 2015. The bank reports that it was able to close 42 hedge fund deals. The number is much higher that the deals closed in the year 2014 which were only 32, hence reporting a 27% growth in hedge fund sales.
The bank also says that despite the four quarter of 2015 having large transactions, a combination of many key drivers propelled the bank to this growth. This will hence translate to a great year in 2016 with the company expecting to break the records especially in the hedge fund and also M&A transactions.
Despite most hedge fund strategies not working very well in 2015, the industries assets remain high all the time. The lag in the performance of the hedge fund has made institutional investors turn to alternative sectors in asset management, with hopes of achieving higher returns. Most of the small hedge fund companies are having a struggle attracting new investors, hence no new capital.
They are therefore forced to operate below the levels of their optimal portfolio capacity. Higher operational costs are being incurred together with the downward pressure on fees being high. The only option left for managers of such hedge funds is to look for strategic alternatives. A variety of ideal mechanisms will be used to accommodate both the buyers and the sellers.
The hedge fund managers are moving away from the traditional M&A, and transactions are now being structured as incubator deals, PE stakes, revenues-share stakes, PE bolt-ons and many more. Karl D’Cunha, a senior director at the Madison Street Capital, LLC, has said that the hedge fund industry which is highly fragmented will continue to have consolidations, especially from the strategic partnerships that will enable bridging distribution, to the product offering.
Madison Street Capital, being an international investment bank has been known for its dedication to the highest integrity and professionalism standards. Its services include corporate financial advisory, valuation services, expertise in mergers and acquisitions, and financial opinions to both public and private businesses. They have offices in Asia, North America and Africa.
Madison is very dedicated to its client’s needs and its philanthropic support to other organizations like the United Way. The company also believes in building healthy businesses all over the United States and making a difference locally and globally. Their team of professionals has vast experience and knowledge in all the fields they deal with, hence offer exceptional service to their clients. They understand that all the circumstances they face require careful analysis and recommendations.
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