When the times get tough, some people hedge their bets. Others buy hedge funds.
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.
Photo: Reuters
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[...] There is no shortage of M&A in the world of alternative asset managers. (DealZone) [...]
- Posted by Thursday links: ETN credit risk « Abnormal ReturnsSome good points about the demand for alternative investing. In addition, the need for alternatives that are a diversification from traditional investments and public markets in the form of private offerings should continue to see an increase in demand. We discuss this at length at investingsymposium.com.
- Posted by Dominic Mazzone