Alternative investment firms have become attractive to buyers looking to navigate the challenges thrown their way by the worldwide credit crunch.
Jefferies Putnam Lovell said sales of alternative investment firms account for a record 40 percent of deals in the global investment management business so far this year.
Through April, 29 of the 73 deals announced involved alternative investment firms, it said. Hedge funds lead the way. The total includes 20 transactions of hedge fund and fund of hedge fund managers.
This compares with 66 deals in the same period last year, of which 15, or 23 percent, involved alternative investment firms.
Jefferies Putnam Lovell Managing Director Aaron Dorr said they expect the trend to continue.
“We expect record demand for alternative asset managers to continue throughout 2008, motivated by buyers’ search for absolute returns and innovative products in challenging capital markets,” Dorr said.