Are Asset Management Deals Likely to Resume?
Running a hedge fund can be a good thing. But cashing out and selling a stake of a asset management company is better.
A recent survey of partners at 300 hedge funds conducted by accounting firm Rothstein Kass showed that two-thirds of managers expect large financial institutions to keep buying hedge-fund firms over the next three years.
The survey was conducted before the market volatility hit the industry. But hedge funds are known for carving out opportunities during periods of uncertainty, Howard Altman, co-managing principal at Rothstein Kass, noted.
“Market volatility is actually helpful to hedge funds - some funds actually tend to thrive in this environment,” he said CNN Money
The dust from the volatile summer should settle, and soon we will see how long it takes for the appetite for hedge fund M&A to return. If Och-Ziff and AQR made it through the gauntlet they might even be able to resurrect their deals to go public. A thaw will eventually occur, and if the deals price correctly they might even work out for public shareholders buying in the aftermarket, who were burned in the hype surrounding the Fortress and Blackstone IPO’s.
Hedge funds get hitched
CNN Money
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