Madison Street Capital, an international boutique financial services firm, announced that 42 hedge fund related deals were either announced or closed in 2015. This information was contained in the firm’s international report on the Hedge Fund Industry’s M&A overview. The report covers all financial transactions and M&A opportunities.
In its report, Madison announced that the 2015’s hedge fund deals surpassed those closed in 2014 by 10. In addition, the transaction volume measured in 2015 was 27 percent higher compared to the previous financial year. These figures were propelled by the wave of financial transactions recorded during the last quarter of 2015. This deal momentum has created perfect conditions for an increase in opportunistic mergers and acquisition deals in 2016.
Other Report Details
According to Madison Street Capital, assets in the hedge fund industry reached the highest number ever recorded. This was despite the fact that 2015 recorded mediocre performances in most hedge fund strategies. This caused institutional investors to focus their attention on alternative asset management opportunities in order to match growing liabilities.
On the other hand, managers of small-sized funds struggled to find new capital. This made them operate below their optimal levels. Many managers ended up incurring high cost of operations forcing them to consider strategic alternatives. This has poised 2016 to be a great year for sealing deals like M&A.
Karl D’Cunha from Madison Street Capital reported that the deal environment for the industry will be strong in 2016. Several structural deal mechanisms are in place to accommodate market players including buyers and sellers. These transactions include revenue share stakes, M&A deals, incubator deals and PE stakes.
Madison Street Capital
Madison Street Capital is a financial services partner that offers strategic advisory services to clients located in North America, Africa and in Asia. It has experienced financial specialists that advise clients on various financial and investment matters including M&A, capital restructuring, buy outs, bankruptcy, valuation services, solvency opinion services and private placement.
The Chicago based firm has two offices. One is located in Accra, Ghana, while the Asian office is in Haryana, India. All specialists at the firm analyze their client’s individual needs and business operations before offering their financial advice. This allows them to first understand the client’s business model and meet their unique needs. The firm is headed by Charles Botchway as CEO. The Chief Operating Officer is co-founder Anthony Marsala. Other managing directors include Lester Rodgers, Karl D’Cunha and Jaydip Sinha.
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