Alternative Investment Merchant Banking (AIMB), a joint venture between Grisons Peak and IGS, has been launched to advise on M&A and restructuring deals for firms in the alternative assets industry facing a ‘Darwinian’ consolidation phase.
Grisons Peak, the financial services investment bank, and IGS Group, an alternative assets advisory business, are launching the 50:50 joint venture AIMB to target UK and European deals deal involving single fund managers with AUM of between $250m to $750m or Fund of Hedge Fund managers with AUM of between $400m and $1bn.
The business will be co-led by Paul Sullivan, Partner of Grisons Peak, and John Godden, CEO of IGS Group.
John Godden, CEO of IGS Group, said: “With a 30% decline in AUM, expected 50% decrease in the number of Fund managers and no incentive fees for 2008, we will see a continuing surge in merger and acquisitions activity as the Hedge Fund industry goes into an accelerated Darwinian phase. The alternative assets industry has traditionally been formed of boutiques which make for particular and complex merger issues requiring specialist knowledge of both Hedge Funds and M&A expertise.”
Paul Sullivan, Partner of Grisons Peak, added: “The reduction in AUM in 2008 and the expected continuation of this trend in 2009 will increase the pressure on the owners and managers of alternative investment firms. Many of these firms will seek partners in order to improve profitability and increase their attractiveness to investors.”
Source: Thomson Merger News