Alternatives Consolidation To Continue Apace In ‘11

Apr 6 2011 | 3:49am ET

Last year, alternative investment firms were involved in 101 mergers and acquisitions. This year, one study says, expect more of the same.

Investment bank Freeman & Co. said that the consolidation of the hedge fund industry will continue apace in 2011, with more than 100 M&A transactions predicted. And the total value of those deals will exceed that of last year.

It should also be the second straight year that alternative investments M&A deals outnumber those in traditional asset management; last year was the first time that happened.

“Alternative deals will continue to outpace traditional managers while total deal size is expected to surpass that of 2010,” Freeman said.

What’s more, traditional managers are striving to become more like their alternative peers, with the explosive growth of long/short equity mutual funds, which have increased five-fold over the past five years.

“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 alternative process,” Freeman’s Eric Weber said. “These robust trends will continue into 2012 and beyond.”


In Depth

Q&A: Omni Macro Fund Bullish On India, Watching China

Mar 4 2015 | 3:35pm ET

Omni Macro Fund was formed in 2007 by Stephen Rosen, previously a prop trader at...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Managing Diversification And Drawdowns In The “New Normal”

Mar 5 2015 | 2:42pm ET

In 2008-2009 diversification alone failed to provide adequate risk management for...

 

Editor's Note