Thu, Jul 31, 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. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass