The international investment banking firm Madison Street Capital, LLC, has released the 4th edition of its mergers and acquisitions report. In it, Madison Street Capital reports hedge fund deals that were closed or announced in 2015. There were 42 hedge fund deals closed or announced globally in the year 2015, an increase when compared with just 32 deals in 2014. According to AUM, transaction volume in 2015 increased 27 percent over 2014.
The report forecasts a strong outlook for hedge fund M&A transactions in 2016, following momentum from the 4th quarter of 2015 and other indicators suggesting future deal momentum. The report discusses reasons for hedge fund managers looking into alternative investments and consolidation. Lagging hedge fund performances in 2015 led investors to consider alternative assets to increase the chances of higher returns. This approach is necessary especially for smaller hedge fund managers, who have trouble with both getting new capital and increasing operational costs. Senior managing director Karl D’Cunha describes different types of deals taking place in the hedge fund industry such as “seed or incubator deals, revenue-share stakes, PE stakes, PE bolt-ons.” D’Cunha also sees opportunities for consolidation and partnerships among different hedge fund companies, as the hedge fund industry is heavily fragmented.
Madison Street Capital serves clients globally with strategic and financial advice, covering areas like capital introduction, portfolio valuation, and financial restructuring. The firm offers corporate advisory assistance in areas such as mergers and acquisitions, capital restructuring, bankruptcy and reorganization services. The company is located in Chicago, Illinois, although it has offices in North America, Asia and Africa. The organization partners with both small and middle-market firms, niche markets and international companies. The firm works with clients in a variety of sectors including aviation through retail trade.
Madison Street Capital acts as a reliable source in helping parties navigate successfully through the financial market such as when trying to obtain capital. The company’s mission is client service. Financial advisors with Madison Street Capital work to understand clients’ business models and offer them useful, honest and sometimes tough advice to help businesses optimize their results. Some of Madison Street Capital’s successes come from expertise, attention to detail, and strong negotiation skills. The firm can handle M&A transactions through structured methods to organize difficult and complex transactions, helping buyers and sellers come to a business agreement with a strong degree of trust.
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