The London-based fund manager advisory firm has purchased investment consultant Allenbridge and fund-services provider Tower Gate Capital for a mixture of cash, shares and earn-outs. The acquisitions have created a firm that advises over 300 asset managers covering more than £200bn worth of assets including hedge funds, private equity, real estate and infrastructure. MJ Hudsons’ decision to add muscle to its practice comes at a time when pressure on fees and underwhelming returns are spurring growing M&A activity among hedge fund managers.
Growth in outsourcing
The pressure to scale-back massive back office operations has also seen a growing interest in legal outsourcing across the sector, says MJ Hudson chief executive Matthew Hudson: ‘[Investors] are saying to [hedge funds], ‘are you really the best people to manage 50 lawyers or 100 compliance people?’ he said. ‘If the trend of large-cap outsourcing were to continue, we need to be a lot bigger.’
Source: Wall Street Journal
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