Madison Street Capital Releases Fall 2011 M&A Outlook - Hedge Fund Industry

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Madison Street Capital’s Asset Management Industry Focus Group Provides an Outlook on M&A Activity for Hedge Fund Managers

“The transaction activity in the Hedge Fund industry, as indicated by both the number and size of completed transactions, can best be described as sluggish,” said Karl D’Cunha, Senior Managing Director and head of Madison Street Capital’s Asset Management

Madison Street Capital’s Asset Management Industry Focus Group released its Fall 2011 M&A Outlook- Hedge Fund Industry. The document focuses on the current deal environment, buyer/seller considerations, minority interest investments and future M&A drivers.

“The transaction activity in the Hedge Fund industry, as indicated by both the number and size of completed transactions, can best be described as sluggish,” said Karl D’Cunha, Senior Managing Director and head of Madison Street Capital’s Asset Management Industry Focus Group. “However, if last year’s results have any predictive value, we can expect a surge in activity in the fourth quarter that will likely spill over into the first quarter of 2012.”

The key drivers behind M&A Activity include the following:

  •     Push for Increased Regulation
  •     Higher Valuations
  •     Tax Arbitrage Opportunities
  •     Rising Industry Consolidation

Aside from these factors, a fundamental driver will be supply and demand in terms distribution and product offering. As long as there are platforms that are continuing to expand and increase their distribution channels (and to the extent they are lacking in product diversity), there should be ample supply of target hedge fund firms to fill those gaps.

To receive a copy of the full report, please contact William Berger at: williamb@harrisonpublicrelations.com.

About Madison Street Capital:
A leading provider of corporate finance and mergers & acquisitions (M&A) advisory, Madison Street Capital’s professionals have the ability to arrange the appropriate financing and capitalization structure to suit each clients’ specific situation. Headquartered in Chicago, Illinois, the middle market investment banking firm has offices in North America, Africa, and Asia. The Asset Management Industry Focus group advises a wide array of Asset Managers on an entire spectrum of issues including M&A Advisory, Portfolio Valuation (ASC 820 and IAS 39 compliant), Financial Restructuring, and Financial Sponsor Coverage -Click here to learn more about the Asset Management Industry Focus group.

Experience makes the difference, and having assisted clients in a diverse range of industries, Madison Street Capital’s seasoned professionals understand that all circumstances demand careful analysis and precise recommendations. For business owners looking for acquisitions, selling a business, building a sound exit strategy, or simply for matters of corporate governance Madison Street Capital has a history of execution and excellence in the investment banking industry. For additional information, call Madison Street Capital at 1-312-529-7000 or visit http://www.madisonstreetcapital.com.

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