The recently released 4th edition of the M&A overview of the hedge fund industry was so detailed. Not only did it cover the transaction activity and M&A opportunities in the hedge fund industry but also it shone a light on how the current hedge fund market is. The overview that majorly covered Madison Street Capital, an investment banking firm that operates internationally, and its general performance in the financial services industry in 2015. This overview also compared the 2015 performance to that of 2014 and the expectations of the firm in 2016. In 2014, Madison Street Capital recorded a total of 32 hedge deals and in 2015, this figure increased by 10 to reach 42 hedge fund closed globally. In 2014, the transaction volume was lower by 27% compared to the transaction volume of 2015 as measured by AUM, and this means that the transaction volume increased this year. The fourth quarter of 2015, was the best season of the year for Madison Street Capital as most if its transactions came in at this time. The firm plans that in 2016 it will be able to utilize key drivers in its market strategy to increase deal momentum and increase its M&A transactions.
In 2015, the hedge fund industry was not at its best position. Most of the hedge funds recorded a poor market performance, and this was blamed on the industries poor strategies. Despite this, assets in the hedge fund industry were able to maintain an all time high. Still the performance of hedge fund firms dragged and institutional investors had no option but to make allocations for their investments in other alternative asset management sector. Higher returns that could curb the match rising liabilities was what most of the players in the industry were after. The new capital attraction that was aimed at smaller hedge funds led to operations below optimal portfolio capacity levels for most of this firms. Higher operational costs was a threat to hedge fund managers who were also being challenged by downward feels pressure. Putting all these factors together, strategic alternatives wad the way to go for hedge funds of all sizes.
Madison Street Capital offers strategic and financial to its clients in the hedge fund industry. Their fully integrated solutions for this industry include hedge fund asset management, M&A advisory, portfolio valuation and that is majorly on ASC 820 and IAS 39 compliance, financial restructuring, investment capital introduction and financial sponsor coverage. Madison Street Capital has higher prospects of being even more successful in 2016, as the deal environment is getting stronger in the industry. Structural changes that have a place for buyers and sellers will favor the firms success. We all are waiting for the 5th edition of this overview to see what Madison Street Capital managed to achieve in 2016.
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