Madison Street Capital has released its annual global hedge fund industry merger & acquisition overview. The summary looks into the various indicators in industry for the year 2015. In addition, the report compares such information with the performance of the sector in the last few years. It provides players with a professional outlook of the industry. Many players in the industry peruse the report to get detailed insights about the market. This is a true measure of Madison Street Capital’s reputation.
According to the report, there was an increase in the number of transactions completed in 2015. In total, 42 deals were successfully closed as compared to 32 in the previous year. This upsurge represents an increase of over 27 percent in transaction volume as measured by AUM, relative to 2014. From the data, the highest numbers of dealings were undertaken in the fourth quarter of 2015. Analysts were optimistic that the momentum would continue into 2016 and make it a record year in hedge fund M&A transactions.
In addition, the company reported an increased number of M&A deals. The value of hedge fund sector assets was at all-time high. This means that the shareholding of the companies rose considerably. The distinct improvement in asset value was of great interest to many analysts. This is because in 2015, hedge funds reported dismal performance. This situation caused many fund managers to seek for alternative asset management solutions. They were hoping to enhance their firm’s revenues. Such income would help in meeting the increasing operational costs.
The mediocre performance of hedge fund strategies has also affected the ability of fund managers to attract new capital. This is because more investors are opting for other investment solutions. Given the scenarios, many fund managers have been operating below their optimal levels. To this end, these firms have been reporting lesser revenues coupled by the ever-increasing costs of operations. Additionally, fund managers are facing downward pressures on fees. Clients continue to demand for fee reduction. Combination of the two factors has adversely affected the operations of small fund managers.
About Madison Street Capital
Madison Street Capital is a strategic investment-banking firm. Its headquarters are in Chicago, Illinois. The company provides its clients with valuation services, advice on mergers and acquisition, corporate financial advisory services, and financial opinions. It operates in North America, Africa, and Asia. Madison Street Capital has extensive experience in creating real opportunities in various industries such as technology, construction/real estate development, pharmaceuticals, healthcare, consumer markets/retails, aerospace, and distribution.
The company is committed to excellence, leadership, and integrity. The management and employees understand the value of timely delivery of solutions. The investment firm responds quickly and tenaciously to opportunities. It has a unique way of matching of buyers and sellers.