Thu, Dec 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Freeman & Co. A.M. report projects growth in alternative transactions, more than 100 this year

Wednesday, April 06, 2011
Opalesque Industry Update – Freeman & Co., a leading independent advisor to the financial services industry, released the 22nd edition of its asset management industry overview including data on M&A and deal activity. Freeman & Co. projects that in 2011 alternative deals will continue to outpace traditional managers while total deal size is expected to surpass that of 2010. Based on increasing institutional allocations to alternatives, growing 15% over the past five years, and the significant expansion into retail-oriented alternative products, Freeman & Co. anticipates over 100 alternative transactions again this year. Freeman & Co. reports that in 2010 alternative manager deals outpaced traditional manager deals for the first time. Alternative asset manager deals were up 106% to 101 transactions in 2010 compared to 49 transactions in 2009. In contrast, traditional manager deals totaled 85 transactions in 2010, declining 3% from 88 transactions in 2009.

“Alternatives continue to be a driver of M&A as institutional investors need products to close their funding gaps and mutual fund sponsors create suitable structures for the mass affluent to access these alterative products. We think these robust trends will continue into 2012 and beyond,” says Eric Weber, Managing Director and COO at Freeman & Co. LLC.

The report reviews current industry trends including the convergence between traditional and alternative asset classes as managers seek new packaging solutions for alternative strategies. Also notable is the increasing number and popularity of independent wealth managers providing high-touch and unique services for asset allocation.

In summary, the report details the following

Deal Activity/M&A: Deal activity increased in 2010 to 225 transactions, an increase of 35% over 2009. After large transactions in 2009 such as BlackRock’s acquisition of Barclays Global Investors ($1.5 trillion AUM), this year represented a return to normality, as the number of smaller growth-driven acquisitions increased in 2010. Transactions involving alternative firms outpaced traditional managers, a first for the industry.

Alternative Strategies for Retail Investors: New structures continue to gain market share as alternative strategies are being packaged into UCITS, ETFs and mutual funds. The number of long/short equity mutual funds has grown from 19 to 104 in five years, an estimated 40% CAGR.

High Net Worth Positioning: A growing core of successful independent firms have emerged that focus on open architecture platforms, providing high-touch or unique services to HNW clientele. These independent firms are an alternative to large, traditional providers and are enjoying significant growth.

Emerging Markets: A source of increasing deal activity in 2010 and Q1 2011, transactions involving emerging market managers represent a globalizing asset management business. The way forward will be challenging as investor demands may outstrip product capacity.

(press release)

Founded in 1991, Freeman & Co. LLC is an M&A advisory and strategic consulting firm focused exclusively on the financial services industry with offices in New York and London. The company's advisory services include mergers and acquisitions advice, capital raising, underwriting, fairness opinions, restructuring advice and private company valuations. Strategic consulting assignments are customized to client needs and have covered a wide array of projects. Additionally, Freeman & Co. developed a proprietary algorithm and methodology for benchmarking the competitive position of capital markets businesses, which has become the industry standard used by major investment banks. For more information, visit www.freeman-co.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar