Hedge fund acquisitions are on the uptick, with four important deals announced in the last two months, according to data from investment bank Putnam Lovell NBF Securities. Those deals were: ABN AMRO Asset Management's acquisition of International Asset Management; Victory Capital's purchase of Austin Capital Management; Bank of Ireland's acquisition of a majority stake in Guggenheim Alternative Asset Management; and Vontobel Group's pickup of a controlling interest in Harcourt Investment Consulting.
Overall, Putnam Lovell reported that 2005 ended with 20 hedge fund sales, compared with 22 in 2004. But John B. Griff, president of Putnam Lovell, predicted that more hedge fund deals are on the horizon. "We are seeing an unprecedented level of interest by financial institutions seeking to extend their investment capabilities to the alternatives arena, and especially hedge funds. ... Financial institutions are recognizing that without credible capabilities in this area, they will fall behind the competition," Mr. Griff said in a statement.