Reuters Italia – An increasing number of big banks and insurers are swallowing hedge fund firms so they can offer such services to institutional clients, but the takeovers may end up cutting returnsto the funds’ investors.
Financial companies now see the burgeoning hedge fund industry as an established feature of the asset management landscape, while funds themselves are feeling stiff competition to attract money and ensure survival, analysts say.
“There will be a huge acceleration of big institutions buying the edge that could come from some of the better (hedge fund firm) boutiques,” said Soondra Appavoo, managing director of PSolve Alternative Investments.
So far this year acquisitions include the purchase of International Asset Management by Dutch bank ABN AMRO and of NewFinance Capital by fund management firm Schroders.
