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Alternative Market Briefing

M&A down in 2009, hedge fund industry contributed 26% of deals as activity expected to increase

Tuesday, August 25, 2009

From Kirsten Bischoff, Opalesque New York:

Mergers & acquisitions within the asset management industry were lower in number during the first half of 2009 than they were during the same time period last year, but deal values were doubled due to the record breaking BlackRock purchase of Barclays Global Investors ($13.5bn).

However, a study by Jeffries Putnam Lovell, a division of Jefferies & Company, Inc., a global securities and investment banking group headquartered in New York, was released on Monday and showed a more optimistic outlook for M&A activity within the financial industry for the next 12 months ( Winds of Change: First Half 2009 M&A Activity in the Asset Management, Broker/Dealer and Financial Technology Industries).

“There’s growing confidence the worst of the economic crisis has passed and would-be buyers are re-emerging,” said Aaron Dorr, New York-based Managing Director at Jefferies Putnam Lovell in a statement released by the firm.

While the first half of the year was “a consolidator’s market” expectations are for future M&A to be driven by firms looking to expand their interests and diversify their exposure during the recovery.

Listed asset managers are expected to actively pursue acquisitions, and many firms h......................

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