When the Dodd-Frank regulatory bill was passed, hedge fund managers knew changes were coming. Under the guidance of Securities and Exchange Commission Chairperson Mary Jo White, there is a new enforcement strategy in the works that will impact how hedge funds operate. In 2015, there were 42 hedge fund mergers and acquisitions, and the volume of those transactions was 27 percent higher than the 32 transactions that took place in 2014, according to Madison Street Capital. Madison Street Capital is a Chicago-based investment firm and one of the leaders in small and medium size mergers and acquisitions. Even though the SEC is monitoring the activities of hedge funds and hedge fund mergers and acquisitions, the CEO of Madison Street Capital, Charles Botchway, thinks his company will have an excellent year. Botchway released the 2015 hedge fund mergers and acquisition figures and PRNewswire.com recently published them.
Chief Executive Officer Anthony Marsala recently told an interviewer that the SEC has an enormous amount of information on hedge funds and the activities that take place during M&A transactions. The Dodd-Frank bill has given the SEC the tools they needed to increase their technology capabilities. The government is beginning to understand the hedge fund industry better. The SEC is using Form ADV, and they have introduced Form PF and both of those documents are providing more information on hedge fund transactions and the potential risks that exist in the marketplace, according to Marsala.
The Dodd-Frank regulation has gathered enough information over the past couple of years to write guidance ordinances and enforce action when necessary, according to CEO Botchway. But Botchway said the new enforcement policy is not new to Madison Street Capital. Madison Street Capital has always followed SEC regulations no matter where a merger or acquisition was completed. Madison Street Capital helps companies with portfolio valuations, financial record-keeping, capital identification, and asset management. Madison Street Capital is considered an all-purpose M&A specialist that helps companies work through the fine details of merger transactions.
Chief Operating Officer, Tony Marsala, works with corporations in South America, Asia, and Europe, so American companies that want to acquire a foreign company have all the information they need to make informed decisions. It’s not unusual for Marsala to work with a European corporation that wants to merge with a company in South America. Madison Street Capital has worldwide exposure and a solid international reputation. Even though some investors are predicting a tough year for hedge funds, Marsala thinks his business will be strong in 2016. Madison Street Capital has several mergers in the works. Based on the size of those mergers the new SEC regulations will not hinder the completion of those transactions, according to Marsala.