The fourth quarter of 2015 may be only one indication of what Madison Street Capital M&A analysts are forecasting to be a record year in 2016 for hedge fund M&A transactions. The release of its fourth edition of an overview of hedge fund industry merger and acquisition transactions looked at many key drivers that have created momentum and found despite mediocre performances in hedge fund strategies, hedge fund assets are at an all time high. The Madison Capital overview noted that in 2015, these transactions had a twenty-seven percent higher volume over the previous year.
Karl D’Cunha, Senior Managing Director at Madison Street Capital, states that the strong deal environment in 2015 will continue, yet with a greater variety of deal strategies being employed, such as seed or incubator deals which supply the capital for early-stage companies and reap profits upon the companies success and through private equity bolt-ons, which have the potential to create much more value by partnering with a larger company that can expand into a market. These alternative asset management deals may work to achieve higher returns as liability rises.
Madison Street Capital (MSC), located in Chicago, IL, was established in 2011. Recognized as a world premier middle market investment banking as well as corporate finance and merger and acquisition advisors. With offices also located in Asia and Africa, they have also assisted a wide range of clients with restructuring services, buy side and sell side services for private equity and business valuation services for financial reporting. Currently, MSC carries an exclusive in-house deal count of over one hundred deals. MSC’s expertise in carefully analyzing each clients unique needs to arrange optimal matches between buyer and seller is the result of a combined team of professionals with extensive relationships, experience and knowledge in middle market investments.
MSC sets a leading example for its employees in charitable giving by financially supporting the United Way disaster relief efforts. Recent natural disaster in the Midwest and Gulf Coast has been an opportunity for the company to establish an ongoing fundraising effort within its organization to help rebuild the lives of families affected by these disasters. MSC is committed to working diligently within local and global communities by working with United Way.
Ken Griffin according to wikipedia is a billionaire hedge fund manager. He is well renowned as a smart and aggressive trader. Kenneth Griffin began his investment career at Harvard University. During his second year there, started a hedge fund where he focused primarily in convertible bond arbitrage. Griffin acquired his starting capital from family and friends gathering $250,000. Kenneth Griffin graduated from Harvard University in 1989 with a degree in economics. Griffin’s endeavors during his time at university caught the attention of hedge fund manager, Frank Meyer. After he had graduated, Griffin was entrusted $1 million by Meyer to invest where he managed to earn 70% returns on the investment. The success provided Griffin with an opportunity to jumpstart his career. Armed with $4.6 million, Griffin founded the Citadel Group in 1990. The Citadel Group is a financial institution comprising of three divisions namely Citadel, Citadel Securities, and Citadel Technology. Citadel, which is one of the leading asset managers in the business. Citadel Securities, on the other hand, involve themselves with the provision of liquidity. Finally, Citadel Technology provides investment management technology solutions. The growth of Citadel Investment has been gradual. By 1998, Ken Griffin garnered a team of more than one hundred employees while its capital also grew to about one billion dollars. Today, the firm has over 1000 employees and boasts over $25 billion worth of investment capital. It is also currently among the largest and most successful hedge funds worldwide. With all this success, it is no surprise that Griffin made several appearances on Forbes magazine’s Forbes 400 lists. He first made the list in 2003 having a net worth of $650 million and was the youngest self-made millionaire on that list being 34 years old. Griffin emerged as the eighth richest American under 40 in the self-made, United States based category on 2004. Griffin made the Forbes 400 list again in 2006 as the fifth youngest person under 40 on that list. Griffin’s net worth was estimated to be $3 billion in 2007. This amount grew and by 2014, his net worth was $5.5 billion. Today, Griffin’s net worth is estimated to be about $6.6 billion. Griffin is an avid supporter of educational causes. Griffin sits on the Board of Directors of the Chicago Public Education Fund. Last year, Griffin donated $150 million to Harvard University to go towards undergraduate financial aid. This donation will cover 200 Griffin Scholarships with gifts of up to $250 each. Griffin’s philanthropy is evident through contributions to various causes such as the Chicago Heights Early Childhood Center, the Chicago Children’s Memorial Hospital, the Art Institute of Chicago, the Chicago Public Library, and the Robin Hood Foundation. Griffin’s total contribution to the betterment of other’s lives exceeds $250 million.