Madison Street Capital Overview of the Hedge Fund Market

The growing number of mergers and acquisition across the world is drawing the attention of hedge funds such as Madison Street Capital. According to a 2016 hedge fund mergers and acquisition report published by Hedgeweek on February 2006, Madison Street Capital closed over 42 hedge fund deals in 2015. The cumulative global total was 10 more compared to 32 deals that the firm closed in 2014. The propellants seen to be behind this rise are the wave of new transactions recorded in the Q4 of 2015 and the growth in hedge fund assets in spite of the dismal performance in the hedge fund strategies. The market is also witnessing a trend where many institutional investors are making more allocations to alternative asset management sector to cushion against meager hedge fund performance. The strategy also targets to achieve greater returns in order to enable corporations cover growing liabilities to enable seamless service delivery.

 

A growing number of managers are being forced to consider strategic alternatives due to a number of reasons, including downward pressure on fees and high operating cost, which is eroding business confidence. This factor is pronounced by evidence showing small hedge funds managers operating below optimal levels as a result of difficulties accessing capital. Analysts see a stronger deal environment in the coming years following strong performance market performance in 2015. Already, the new deal mechanisms taking the interest of buyers and sellers are being enforced. Besides Mergers and Acquisition, transactions are being structured in the form of PE bolts ons, PE stakes, incubator deals and seed among other structures. According to MSC Senor MD, Karl Cunha, the future trend in the hedge fund industry is pointing towards consolidations primarily by opportunistic partnerships looking to close the gap between distribution and product offering.

 

About Madison Street Capital

Madison Street Capital (MSC) is a middle market oriented, investment banking firm headquartered in Chicago, Illinois. According to Madison Street Capital YouTube Channel, the firm boasts a formidable team of experienced staff with extensive relationships. To advance Madison Street Capital reputation as a leader, the professionals are also adept at arranging appropriate financing and capitalization structure along with making careful analysis and accurate recommendations. MSC offers an array of services, including mergers and acquisitions advisory, business valuation, restructuring, corporate finance and buy side and sell side services for private equity investors. The firm is also deeply involved in philanthropy because it believes in building stronger ties with businesses and communities all across the US. According to Madisonstreet.org, the firm supports United Way Disaster Relief Efforts of helping communities devastated by disasters like hurricanes. The support goes into providing emergency assistance and long term recovery efforts targeting education and health and financial stability.