Skybridge Acquiring CAI

********  IvyPlus June 15th Fund Business Development Event – http://bit.ly/aToA1J *******

SkyBridge Capital is in the process of closing out a deal with Citi to acquire three hedge fund businesses from Citi.  This is a diversification or forward integration from  SkyBridge’s core seeding strategy into the Fund of Funds business.  Scott Prince, the managing partner of SkyBridge Capital says that this acquisition will make SkyBridge the biggest hedge fund seeder and is estimated to quadruple their profit once the agreement is fully settled in June.  More info here,  http://bit.ly/9GdPA5 . 

As 2010 advances, the business for M&A in FOFs grows as uncertainty in the market continues.  Multiple reasons for FOF uncertainty include (1) the business may no longer be strategic to their financial supermarket owners such as CAI or Ivy Asset Management, (2) are under fee pressure even as returns have improved, or (3) are seeing more of their own institutional investors create investment groups that bypass FOFs. Other targets include, Rock Creek Group, Mesirow Advanced Strategies Inc., Pine Grove Associates Inc. and Archstone Partners. Ted Gooden of Berkshire Capital, a past speaker at Ivy Plus seminars, says "The growing list of acquirers is a sign that “the unrequited buyer-seller love” that characterized most of the past decade is over"  .  More info here, http://bit.ly/a2Re0m

********  IvyPlus June 15th Fund Business Development Event – http://bit.ly/aToA1J *******

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