Hedge Fund Deals are Active according to Madison Street Capital: The Fund reported forty-two hedge fund type deals were either announced or closed on an international basis, in 2015. The figure exceeded thirty-two transactions that were closed in 2014. As well, the volume of transactions, in 2015, measured by AUM, was nearly twenty-seven percent higher than in 2014. In reviewing the preceding circumstances, there appears to be other triggers which caused the influx of transactions to occur within the ending quarter of 2015. This wave of deals caused 2016 to become a record year in way of Hedge Fund M&A transactions.
In summation of the preceding: It appears the hedge fund industry has reached an all-time high: The preceding fact remains, despite a sub-standard performance, across the board, for the majority of most hedge funds. This is to say, institutional investors, are making provisions, in way of alternatives, as it pertains to management of assets. The preceding is true even when hedge fund performance has shown lethargic levels of performance. The investors are hoping to attain an increase in returns in order to match liabilities that continue to ascend.
It is correct to state that the smaller hedge funds and their managers are having a great deal of difficulty in attracting new money to their funds. The smaller Hedge Funds, as a result, are operating, clearly, below their capabilities, as it relates to their financial portfolios. Overall, financial managers have incurred higher operational costs. They, too, have felt the descending pressure of fees. The preceding elements have caused managers, tied to hedge funds; large and small, to naturally consider alternative options as to strategies.
The environment of the deal, within the Hedge Fund Industry, then, was decisively strong in 2015: This is to say, the Hedge Fund deal will become, in 2016, stronger. There are many deal mechanisms in place which accommodate the seller and the buyer. Transactions are being structured as incubator-styled deals, revenue share stakes, PE stakes, and more. The hedge fund industry, which is very fragmented, is going to witness consolidation in the way of partnerships that leverage distribution.
The preceding article recap is based on a full article, located on PR.com.
Information relative to Madison Street Capital:
Madison Street Capital is an organization that is able to lend its customer service that is seen, within the industry, as one that is fully-integrated.
The organization of Madison Street Capital provides its customer base with an attractive approach that combines strategy as well as financial advisory services. The combined service is offered to clients on an international basis. It is encouraged, persons seeking sound, solid financial services call on the expertise offered by Madison Street Capital.
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