Madison Street Capital, one of the leading firms in the investment banking industry reported that a total of 42 hedge fund deals were closed in 2015 as compared to the 32 closed in 2014. According to the 4th edition report released earlier in February 2016, the momentum that was evident in the 4th quarter of 2015 gives a boost to the 2016 projections with regard to the number of deals closed in the hedge fund and M&A transaction industry. The report also gives a general overview that covers the various available mergers and acquisitions (M&A) opportunities and core details of a number transaction activities.
According to the report, despite the 2015 hedge fund strategies resulting in dismal performance, the bump in deals closed can possibly be attributed to the fact that institutional investors decided to pursue alternative asset management in a bid to increase the volume of returns to match up to their ever-increasing liabilities. Unfortunately for small hedge fund managers, the pressure to revise their fees downwards is increasing, especially considering the fact that they are having a hard time trying to attract new capital. As such, a good number of them are operating below optimal capacity. It has therefore become increasingly necessary for them to explore alternative strategies.
The big players in the industries have also had to diversify their range of services and come up with creative strategies to keep their coffers afloat. Currently, apart from the traditional hedge fund management and M&A, transactions involving revenue-share agreements and private equity stakes, among others, are increasingly being fashioned. According to an article by PR.com, Karl D’Cunha the Senior Managing Director at Madison is reported to have extrapolated that 2016 looks better for the industry, seeing as a number of mechanisms have been brought to the table to involve both buyers and sellers.
Madison Street Capital provides valuation services, mergers and acquisitions expertise and financial advisory services, among others, to both private and publicly held businesses. It also provides strategic management consultancy services which could also include matters to do with sound corporate governance or development of an exit strategy. It especially focuses on middle market investment banking. Madison also partners with humanitarian organizations in its philanthropic agenda aimed towards building strong, resilient businesses within communities. One of its philanthropic partners is United Way. While its headquarters are in Chicago, it has offices in Africa, Asia and North America.