There has been a 6.7% increase in global mergers since last year.
"This year’s deals include the MAN Group’s move to buy GLG Partners of London for $1.6 billion, Credit Suisse’s move to buy a minority stake in York Capital for $425 million and TPG-Axon Capital Management’s merger with Montrica Investment Management. Both TPG and Montrica were run by former star traders at Goldman Sachs."
Although mergers in hedge funds make up a relatively small portion of the global mergers, it is an area that is getting specific interest from bankers as the sector is predicted to do well and grow.
One of the reasons proposed for the mergers is that they feel the need to merge into bigger institutions to survive. This is most likely because funds have been flowing to mostly large hedge funds and the smaller ones are finding it harder and harder to attract investors.
It's possible that one of the reasons that the larger funds are getting all the business is that with money tight due to the recession, perhaps people feel more secure in entrusting their money with notorious hedge fund firms.
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