On February 09, 2016, the Madison Street Capital, a top global firm in investment banking, announced its 4th edition of its M&A deals in the hedge fund business. The report touched on various critical areas such as the Mergers and Acquisition openings and a summary of M&A deals.
In the report, Madison Street Capital proclaimed that 42 deals from its hedge fund business were closed internationally in 2015.This was a boost from the 2014 previous year, where 32 deals were announced internationally. In addition, the report detailed that the 2015 transaction capacity had grown by an estimate of 27% more than that of 2014. In 2016, the report projected that Madison Street Capital’s M&A transactions would grow due to the presence of various factors creating momentum for closing deals.
A Brief Overview on the Report
Unlike in 2015, whereby the hedge fund industry had a mediocre performance, the report stated that the assets of the hedge fund industry had been currently increasing. Additionally, the institutional investors were said to be making allocations to another sector in asset management to achieve better returns to combat the continuously increasing liabilities.
Hedge Fund Managers
Minor managers for hedge funds were said to be operating below their standard capacity in a bid to lure new capital. Across the entire hedge fund industry, the managers were proclaimed to be incurring increasing operational costs.
Assertions by Karl D’Cunha
Karl D’Cunha, the Senior Managing Director at Madison Street Capital LLC, asserted that the transaction environment was robust, and the company maintains the expectation for the trend to be better in 2016.Further, he said the company was expecting its numerous deal mechanisms to be utilized in accommodating both sellers and buyers.
In addition, he revealed that Madison’s deals were being structured as revenue-share stakes, incubator deals or seed, PE bolt-ons, PE stakes and many others. D’Cunha ended his remarks by saying that the highly disjointed hedge fund industry would continue to witness consolidation, specifically the opportunistic partnerships, which link product offering to distribution.
An Overview on Madison Street Capital
Madison Street Capital is a global banking and investment company, which is dedicated to leadership, integrity, service and excellence in rendering financial consultative services. Its financial services are offered to both privately and publicly owned business entities. It provides financial opinions, corporate financial advisory services, mergers and acquisitions expertise, and valuation services via its offices in numerous locations in Africa, North America, and Asia.
True to its service delivery, it owns up its clients’ objectives and goals as they engage in each new project. Madison Street Capital views the emerging markets as the key element that drives the development and growth of its clients.Consequently, it continues to target its assets or resources towards such markets.
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