Madison Street Capital: Positive Outlook For 2016


Madison Street Capital is an investment banking firm that is being led by a group of professionals with strong backgrounds experience and education. Jay Rodgers is one such individual. He is a Managing Director at Madison Street Capital and a former officer in the United States Army. Rodgers has extensive experience in the industrial sectors of construction, agriculture and manufacturing. Before working at Madison Street Capital, Rodgers was at the Lehman Brothers, Drexel Burnham Lambert, Noyes Inc. and Hornblower & Weeks-Hemphill.

Madison Street Capital has offices in Africa, North America and Asia. They are best known for their mergers and acquisitions, valuation services and advising on independence and corporate governance worldwide. For middle market companies that are looking to seek favorable lending, looking for acquisitions or wanting to build a sound exit strategy, Madison Street Capital is able to help. The firm has helped to create transactions between Star Seismic and Vopne Capital, Mind Solutions, Inc. and WHC Capital, TruGolf, Inc. and Grenvill Strategic Royalty Corp and Bjorksten Bit 7 and Woodlawn Partners. They have been able to facilitate these transactions because of their network of connections at foundations, endowments, financial institutions, corporations, unions, local governments, money managers, mutual funds, state governments and pension funds.

The firm publishes a report every year, detailing their transaction activity. When Madison Street Capital’s report was released this year, several news outlets picked it up. and HedgeWeek were two of those outlets. They wrote summaries of the report which detailed the main findings. One of the more interesting findings was the number of hedge fund deals that the firm either announced or closed during the year. In 2014, this number sat at 32. In 2015, the number rose 27 percent to 42 deals. The report also stated that this is a wave of momentum that will carry the firm to even better numbers in 2016.

The summary went on to share other pieces of information from the report, including the fact that even though hedge fund performance was not great last year, it is not because the high value assets are not there, it is because hedge funds are using the wrong strategies. The Senior Managing Director of Madison Street Capital understands this. The summary quoted him in his discussion of the need for more alternative solutions and a bigger variety of deal mechanisms. He gave examples of said deal mechanisms, including incubator or seed deals, PE bolt ons, PE stakes and revenue share stakes. D’Cunha went on to say that the industry will see changes from its current fragmented state. Over the next few years there will be much more consolidation going on.

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