Chicago-based Madison Street Capital had a decent year in 2015 in spite of the weak performance of most hedge funds. Rising operational costs, the uncertainty in the global economy and the lackluster performance of basic assets were the main reasons that hedge fund managers around the country had a difficult time attracting new capital. But Madison Street Capital, one of the top Merger and acquisition firms in the country, recently reported 42 hedge fund deals closed in 2015. That number tops the 2014 number by ten transactions, according to PR.com.
Madison Street Capital was founded by Charles Botchway, the former Vice Chairman and group Managing Director of Houlihan Smith & Company. Botchway has an enormous amount of experience in the investment industry, according to the managing director of Madison Street Capital, Karl D’Cunha. D’Cunha said the hedge fund industry is going to see more consolidations and opportunistic partnerships. Botchway and D’Cunha are experts in the alternative asset management field, and they believe the industry will see more revenue-share stakes, incubator deals, PE bolt-ons and PE stakes. The fragmented hedge fund industry will be stronger in 2016, and there will be more creative deals made by sellers and buyers.
But the diversity that exists in strategic planning within the Madison Street Capital organization in terms of Portfolio Valuation, Capital Introduction, Financial Sponsor Coverage and Financial Restructuring gives the company an advantage in the hedge fund industry in 2016. Botchway and COO Anthony Marsala are planning to increase Madison Street Capital’s M&A portfolio in 2016 and produce better company returns by using alternative investments.
Karl D’Cunha said Madison Street Capital knows how to use capital reorganization programs to their advantage, and he said Botchway and Marsala are masters at helping mid-size corporations become more productive and profit centered. The main thrust of Madison Street Capital in 2016 is investing in assets that are recession proof, and that isn’t easy especially now. In spite of the recession that has Europe, Asia and South America under siege, Madison Street Capital is in a good position to have a record year in 2016.
The hedge fund industry is under attack by political leaders in the United States and hedge fund managers across the country are preparing for a difficult year, but Madison Street Capital’s founder, Charles Botchway, isn’t concerned. Botchway knows there will be more merger and acquisitions in 2016 because many mid-size companies will need funding in order to survive.