Last year brought $17.1 billion in transactions in the asset management sector, but that figure may drop this year as firms grow more cautious.
Tough times for active managers have bankers predicting an uptick in M&A.
Although predictions are that a boom in hedge fund mergers is imminent, the peculiar nature of hedge funds is likely to militate against such a widespread flurry of mergers.
Man Group acquired GLG Partners in a $1.6 billion takeover — the largest ever between hedge fund firms.
2009 Rainmakers of the Year: Pfizer–Wyeth Corp. merger
Morgan Stanley CEO-designate James Gorman seeks to dominate U.S. retail brokerage by smoothly integrating Citi’s Smith Barney unit. “We are creating a distribution giant with a lot of muscle,” says Gorman.
Long gone are the days of institutions trumping one another to swallow up hedge funds.
In an article about Citicorp’s megamerger with Travelers Group, Institutional Investor described the deal as providing “a little insurance” for the firms’..