Madison Street Capital’s Provides Forecast for the Hedge Fund M&A Industry In 2016

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Early on every year, Madison Street Capital provides their clientele and followers globally with an estimated forecast for the different sectors of the economy. At the end of the year, particularly after the end of the fourth quarter, the company then provides this audience with a recap of all that has been happening in the world of finance. The year 2016 was no different where the company provided a detailed forecast for the Hedge fund mergers and acquisition globally.


In a summarized report published on, Madison Street capital released review of the Hedge fund M&A industry. To a large extent, the overview covered the hedge fund transactional activity as well as M&A opportunities that Madison suspected to be in the offing. It also detailed in part, the trends assumed by the hedge fund industry in the past few years with expert opinions on how these would shape the 2016 market.


For instance, the review noted that close to 42 M&A hedge fund deals were closed in the year 2015, exceeding the number of similar deals closed in 2014 by 10. It also highlighted that the 2015 transactional volumes for the hedge fund industry for the Assets under management exceeded similar volumes in 2014 by 27%. The last quarter of 2015 had also seen an increased wave of transactions in the hedge fund markets that Madison professionals believed would turn 2016 into a record year were they to continue.


Summarized details of this forecast report


The bottom line for the 2016 report was that the year could easily close in on a record high in terms of the number of M&A and transaction volumes. However, the achievement of this forecast relied heavily on extensively on the continued market activity experienced during the last quarter for 2015. Most notably, the overview went on to highlight the impacts that positive changes in the various sectors of the finance industry would have on the hedge fund performance for the year 2016.


For starters, the report noted that while the closing transactional volumes proved commendable, most strategies adopted by the hedge fund companies didn’t perform as optimally. This, however, didn’t deter investors from channeling even more of their funds towards the alternative investment market. Among the challenges compromising the achievability of this forecast in the hedge fund industry, Madison Street Capital professionals pointed out to piling pressure to reduce management fees and the struggles experienced by small hedge companies in attracting funds.


About Madison Street Capital


Madison Street is a privately held finance and advisory company based in Chicago, IL. The company specializes in offering all-encompassing advisory services to different companies spread across all industries on matters finance, corporate governance, and legal assistance as well as representation services during mergers and acquisitions.


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