Madison Street Capital’s Hedge Funds M&A report, 2016

Madison Capital’s M&A Hedge Fund report of 2016 had some interesting revelations about the industry in the previous year. Unlike in 2014 where the industry recorded a total of only 32 hedge fund deals, in 2015 the number grew to a high of 42 transactions. Further, the report revealed that according to the AUM the transaction volume in 2015 went higher by 27% in comparison to what was registered in the 2014 report.

An article published on indicates that although most hedge fund strategies in 2015 resulted in low performance, in 2016 the assets of the industry are at their peak. Another important factor to consider is that hedge fund managers are succumbing to pressure to look for new strategies. Madison Street Capital’s report sheds some light on the impact of the pressure facing hedge fund managers and other key players in the industry. The pressure is owed to financial investors who are increasingly investing in other alternatives within the asset management sector. The investors are equally being compelled to acquire greater returns to cater for the ever increasing liabilities. The domino effect has not left out small hedge fund managers who must now get new capital. Read more:

Upon releasing the report, the Senior Managing Director at Madison Street Capital, Karl D’Cunha said that in 2016, he expects the dealing environment to grow stronger. He added that various mechanisms in the dealing structure are being maximized and therefore providing a healthier environment for buyers and seller equally. Besides the conventional M&A, D’Cunha foresees the rise of other deals including revenue-share stakes, incubator deals and PE stakes and bolt-ons, among many others.

Madison Street Capital’s Senior Managing Director firmly believes that in 2016, the hedge fund industry will experience diverse consolidation. Speaking about the previously substantially segmented hedge fund sector, D’Cunha predicts opportunistic partnerships. He believes that these opportunistic mergers will be what the industry needs to link distribution to the offering of products.

Madison Street Capital

Madison Street Capital is a financial investment company that operates at the international level. The financial investment firm was established and incorporated in 2011. Madison Street Capital offers financial and financial advisory services to individual and corporate institutions. Madison Street Capital also deals with reorganization, acquisitions, mergers, bankruptcy, and valuation for goodwill and intangible assets, capital restructuring and other financial services. The investment firm is based in Chicago Illinois, and it has established other offices in Africa and Asia to cater for its global clients. For having major players in the financial industry as clients, the Madison Street Capital has become renowned all over the world.

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