M&A activity set to grow
Merger and acquisition (M&A) activity is tipped to rise in 2013, with 10 per cent of fund managers planning to acquire another business in the next five years, a report suggests.
The forecast represents a marginal increase on the last five years, which saw 7 per cent of fund managers picking up a new venture, the State Street Corporation survey showed.
Regional expansion is also on the cards, with nearly one in five surveyed fund managers planning to expand into new regions by 2018, while 18 per cent plan to introduce managed accounts.
Contrary to previous reports, growth in the alternative sector is expected to continue, with fund managers looking to reassess fee structures and adopt more innovative approaches to remain competitive, George Sullivan, executive vice president and global head of State Street's Alternative Investment Solutions, said.
"Managers who remain innovative as they respond to demands from investors will be positioned for success in this new era where investors will look to employ alternatives more commonly than ever before," he said.
More than half of the 400 surveyed fund managers said they expected an increase in the use of hybrid alternative fund structures, which merge elements of traditional hedge fund and private equity models.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
