The much-anticipated release of the 4th edition, 2016 overview for Hedge Fund M&A by Madison Street Capital, LLC is finally out. The overview extensively covers M&A opportunities and transaction activity. Madison Street Capital is a Chicago-based global boutique investment firm that primarily offers commercial monetary consultative services, expertise in mergers and acquisitions, financial views and valuation services to privately and publicly held enterprises.
The report states that a record 42 Hedge Fund deals were successful closed worldwide in the year 2015 compared to the previous year which recorded closure of 32 transactions. Furthermore, a report by AUM indicated that the 2015 trade volumes were up 27% compare with 2014. Therefore, 2016 promises to be a year of record turnover regarding Hedge Fund and M&A transactions mainly attributed to the impetus provided by the 2015 fourth quarter wave of deals.
In brief, the report suggests that the hedge fund assets are still riding high in spite of the fact that performance is well below the set strategy standards of 2015. Despite the lag in performance, the company investors are continuously allocating investments to other optional asset management areas in the dream of realizing greater and necessary profits to match up the ever rising liabilities. Attracting new capital has become daunting to smaller hedge funder managers hence they are forced to operate below the best possible portfolio ability levels. On the whole, small hedge fund managers are forced to work on higher costs and experience downward pressure on fees altogether. These variables are driving hedge fund managers of all calibers to seek alternative strategic options.
In 2015, the hedge fund industry environment was a little bit stronger, and it’s projected that 2016 will be a much more active year. Regarding structure, a lot of deal mechanisms use is continually witnessed to house both sellers and buyers. The managing director at Madison Street Capital notes that the exceedingly patchy hedge fund industry will frequently see substantial consolidation, more specifically partnerships that leverage opportunities to bridge the gap between distribution and product offering.
Bottom-line: Madison Street Capital is fully committed to integrity, leadership, Excellency and impeccable service delivery. The firm tops in providing business-oriented financial advisory services to clients across the globe with the utmost professionalism, high level of experience and timely results. To read this article, go to PR.com for an expanded version.