Sat, Aug 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Anand outlines current state of play in hedge fund merger and acquisition activity

Monday, July 01, 2013

Beverly Chandler, Opalesque London:

Speaking at the London Emerging Manager Forum, Ravi Anand, head of corporate finance at Dexion Capital said that the hedge fund industry has been evolving and changing a great deal over recent years, running in parallel with private equity.

Anand said that the first step in analysing merger and acquisition activity in the hedge fund sector was to estimate how big hedge funds are relative to asset management in general. With the hedge fund industry estimated to have some $2.3tln under management, it is a tiny concentrated part of asset management in general, Anand said. And the concentration means that 5% of funds represent more than 65% of the industry and 9% of funds of funds control more than 33% of the assets.

Reasons why there has been merger and acquisition activity includes funds that are sub-scale and fund management groups on the prowl for alpha and hedge fund skills. Since 2010, Anand told his audience, there have been 80 m&a transactions in hedge funds, against 400 in asset management firms generally. Key drivers, Anand said, are distribution, distress and financial.

Future drivers for m&a activity in hedge funds are regulation and operational scale. "AIFMD is going to affect people’s ability to function going forward" Anand said. Another trend that has appeared in the US is for private equity groups to......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added