Recently, Madison Street Capital released its annual report on hedge fund industry merger and acquisition. The report shows that the performance of the hedge funds was above the industry average. The transaction volume of the M&A was 27 percent more than that reported in 2014. AUM seeks to measures the size of transaction. According to Madison Street Capital, the increase was reported in the fourth quarter of the year. During this period, there was a stronger wave of transactions. Moreover, the company believes that the wave portended that 2016 would have the highest number and volume of M&A transactions.
According to the report released in December, the value of hedge fund assets was at its highest point. This is particularly surprising since the performance of most hedge fund strategies had been average throughout the year. This lag prompted many hedge fund managers to look for new ways to generate revenues. To this end, hedge fund investors are allocating money to alternative asset management sectors in hopes of keeping their businesses afloat.
For small hedge fund managers, the poor performance made it difficult for them to make profits. These firms are finding it harder to generate the minimal capital needed to maintain optimal portfolio levels. This situation has seen them accrue more liabilities. Operating costs have been rising despite the overwhelming pressure from clients who are demanding for lower fees.
Speaking during the release of the annual report, Madison Street Capital’s senior managing director, Karl D’Cunha, pointed out that the stronger deal environment in hedge fund industry has been improved by the availability of deal mechanisms. He added that these deals accommodate both sellers and buyers. This information was originally reported on Hedge Week as explained in the following link http://www.hedgeweek.com/2016/02/09/236314/madison-capital-provides-2016-outlook-hedge-fund-ma
About Madison Street Capital
Madison Street Capital is a renowned investment-banking firm. The company has been committed to the virtues of leadership and service, excellence and integrity in delivering services to its clients. The firm has been responding quickly to opportunities. Madison Street Capital’s approach to business enhances corporate finance transactions where investors and owners of business benefit. The company has adequate experience and knowledge to match buyers and sellers. Over the years, their methodology has played an integral role in enhancing their services. The employees have adequate knowledge on matters of corporate finance. This includes valuation, due diligence, deal structuring, market pricing, mergers and acquisition, engaging in alternative exist strategies and specialized financing.
The company has a history of helping different clients achieve their goals. Madison Street Capital’s experience is in the areas of corporate finance and corporate governance. This way, it leads in the provision of financial advisory services. The firm has offices in Africa, Asia and North America. Its global view and approach to business gives equal emphasis to networks and local business relationships. Some of the services provided by the company include corporate advisory, financial opinions, asset management, business valuation, financial reporting as well as tax planning and wealth preservation. This information was originally published on Madison Street Capital’s website as outlined in this link http://www.madisonstreetcapital.com/about-us