Madison Capital’s synopsis of the state of the hedge fund industry was released today, in its 4th edition, and cited an astounding 42 hedge fund deals that either transpired or publicized in 2015, surpassing the 32 fund deals the were finalized in 2014.
As well, AUM indicated that the number of 2015 transactions was slightly more than 35% of the volume registered in 2014. Q4 2015 served as a stimulus for the flurry of transactions, setting up 2016 as a memorable year for hedge fund M&A transactions.
The fourth edition offered insight into the hedge fund sector, addressing that despite a lackluster performance, assets were skyrocketing. Investors that are the focus on the institutional sector, taking note of such dismal performance, are taking up camp in other lucrative sectors, hoping to offset anticipated liabilities. While larger firms are well positioned for this scenario, much smaller hedge funds are making every effort to infuse fresh funding, though they anticipate failing to reach established portfolio goals. Grappling with elevated operating expenses and incurring the burden to lower fees is an environment the majority of hedge fund managers are experiencing.
According to Karl D’Cunha, the Madison Street Capital LLC Senior Managing Director indicated that as well as the hedge fund sector performed in 2015, 2016 should outperform 2015, without a doubt. He further indicated that various applications are being employed to satisfy those that are selling as well as buying. Transactions are framed as incubator arrangements and PE add-ons, as well as revenue sharing and PE stakes.
Offering proven financial strategies around the world, Madison Street Capital LLC is a leading provider of information and data associated with Capital Introduction, (ASC 820 & IAS 39 compliant), Portfolio Assessment, Financial Reorganization and Financial Sponsor Consideration. In addition, it is a global financial investment organization offering acquisition and merger advisement, financial strategies and valuation programs to the private and public sectors.
Headquartered at 105 West Madison St # 1200 in Chicago, Illinois, Madison Street Capital Advisors LLC was established in 2011. The telephone number for Madison Street Capital LLC is 312.529.7000 or visit their website at www.madisonstreetcapital.com.
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