Based on Madison Street Capital’s fourth industry hedge fund overview, there was a total of 42 deals closed in 2015, up from the 32 deals previously announced the year before. Hedge fund strategies were lacking in 2015, with overall mediocre performance across most firms. Despite this, transactions for 2015 were around 27 percent higher in volume over 2014. Also, the end of the 2015 year saw a large increase in transactions. Because of this, hedge fund markets and industry assets are currently higher than they have ever been, leaving 2016 in position to break hedge fund records.
Despite the the lacking performance among hedge funds for most of the year, the number of investors moving on to new management for their assets is continuing to grow in hopes of obtaining better annual returns. New hedge fund firms as well as small hedge fund managers are having difficulties securing new business and have to work below optimum standards. While functional costs continue increasing for businesses, and the demand for lower costs becomes more prevalent, it makes sense to see hedge fund managers looking for alternatives.
According to Karl D’Cunha, the Senior Managing Director at Madison Capital, the hedge fund markets saw stronger deal environments in 2015 and they will be even greater in 2016. The hedge fund industry is majorly fragmented but will see more consolidation as time goes on, especially for partnerships that connect distributions.
The firms headquarters are in Chicago, Illinois, with subdivisions in Asia and Africa as well. Madison Street Capital offers excellent asset advisory assistance, expertise on mergers and acquisitions, asset opinions, and business valuation assistance to public as well as private companies. Currently holding over 100 deals under private contract, the professionals at Madison Street Capital have worked with a wide variety of different companies, both public and private.
Madison Street Capital’s professional team have a great deal of experience and knowledge, and are capable of building strong relationships with their customers. Their level of industry experience and assistance to a wide variety of different clients throughout many industries has taught them to carefully analyze all situations equally to provide the most authentic recommendations.
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