A lot of deals have been closed in 2015 by Madison Street Capital. In 2015 alone, 42 hedge fund deals were closed which is far greater than the 32 deals made in 2014. The 2015 transaction volume was measure by AUM as being 27 percent higher than in the recent year of 2014. There have been many factors that have propelled this wave of momentum, especially in the last quarter of 2015. This sets up Madison Street Capital for a record year ahead for 2016.
According to a recent press release on the PR.com website Madison Street Capital released the 4th edition of its hedge fund industry M&A overview. This overview not only covers the recent transaction activities but also any M&A opportunities. What the report states is that hedge fund assets are very high although the performance across the board when it comes to strategies has been low for 2015. The performance of the overall hedge fund has straggled, but the institutional investors have been allocated money into alternative sectors. This was done with the hope of achieving returns to match the rising liabilities. The smaller hedge fund managers are really struggling to attract new capital and are therefore operating below capacity. There has been a occurrence of higher operational costs but at the same time the managers are facing pressure on fees. Due to this fact a lot of hedge fund managers in the market are looking for alternative strategies in order to continue making profits for their stakeholders and investors.
The environment that hedge fund managers have been dealing in has been strong in 2015 but may actually be even stronger going into 2016. There have been a number of deal mechanisms utilized in order to house both sellers and buyers. Although the traditional M&A has been going forward other transactions have been structured differently. Using incubator deals or seeds, PE Stakes, revenue-share stakes and PE bolt-ons.
Madison Street Capital has been in the finance industry for many years and they therefore understand what clients need and want. All clients need a careful analysis in order to get precise recommendations. The firm was founded in 2005 and has seen a decade of profitable business. They are a middle market investment firm that offer their clients a number of different services. These include business valuation, corporate advisory, financial opinions as well as financial reporting.
The team of professionals at Madison Street Capital make clients understand the value of the company first before sharing mergers and acquisition advisory services. This is an essential part of the process and insures that the client has a complete and accurate picture.
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