Just recently Madison Street Capital provided the 2016 outlook report for hedge fund M&A. In the report, a total of forty-two hedge fund deals were sealed or announced internationally in 2015 compared to only thirty-two transactions closed in 2014. Also, the transaction volume in 2015 was about 27 percent higher than 2014 as measured by AUM.
According to the report, the hedge fund sector is currently at an all-time high despite the poor performance in most hedge fund approaches in 2015. However, as the hedge fund lags, institutional investors are making more allocations to the alternative asset management industry with the goal of attaining higher returns to match the rising abilities.
Small-scale hedge fund managers are at pains trying to lure new capital; hence they are performing below the required capacity levels. Overall, most managers are incurring higher costs of operations while still facing downward pressure on fees. All these factors are affecting hedge fund managers making them consider other strategic options.
The hedge fund environmental deal was strong a few years back and is even stronger now. Structurally, the company is seeing various transaction mechanisms used to accommodate both sellers and buyers. Apart from the traditional M&A the company is structuring transactions as incubator or seed deals, PE bolt-ons, and revenue-share stakes among others. With such efforts, the highly divided and volatile industry will continue to experience consolidation more so opportunistic investors that join distribution to the product offering.
Madison Street Capital is an investment banking service provider with an international presence. The company’s reputation and commitment to excellence, integrity, and leadership in offering corporate financial services to private and public companies is commendable. The company uses a global vie approach but also gives emphasis on local business networks and relationships.
The company understands the sensitive nature of this industry; hence, it provides efficient services to all its clients. Madison’s strategy to create corporate finance deals to benefit both the investor and business owners is laudable. The company has an able team of experts loaded with experience, knowledge, and relational skilled customized to match the needs of sellers, buyers, and the concerned financial and capitalization structures across the board.
Madison Street uses tried and tested techniques that reflect experience and expertise in all its dealings. The primary areas of focus include acquisitions, mergers, finance, and marketing, deal structuring, valuation, design and implementation of alternative strategies, and specialized financing among others.
Madison Street Capital reputation is solid in the industry; the company has helped hundreds of businesses to reach their goals. The company’s experience and knowledge on matters of corporate finance and governance place it above the competitors. Madison is an industry leader in offering financial advisory services, valuations, and M&A services. The firm has its offices in North America but with a strong presence in Asia.