Mergers &  Acquisitions

Everywhere we look we see new investment funds, be it open ended or less regulated closed end ones.  Their focus is as wide as the spectrum of available market instruments, from focused real estate, to distressed debt, to inflation linked securities. There are now even funds that focus solely on the risk of deflation.

On establishment of such funds, one is bound to predict nice growth rates and profit assumptions, yet with the current market and investor volatility it is difficult to predict the actual fund inflows and outflows and cash flows or returns on the investments.

In addition to the above, there is ever growing pressure to reduce fees, and to pay up the commissions for the introducers to the funds.

Vision Finance is a firm believer that while the choice of funds will continue to grow, there will be also a significant   consolidation activity amongst the funds, enabling them to share the costs while often keeping the fund strategy in place.  This can happen from complex structured funds, as well as plain vanilla ETFs.

The issue with consolidation

When such consolidation happens, the usual problem is that nobody wants to disclose their books, especially to another financial investment firm who could possibly use their knowledge of the trading positions to make some trades that would not be to the funds advantage.   It is however very important to conduct such valuation, on order to have a good understanding of the fund Net Asset Value, either at theoretical or marketable prices.

Vision Finance has an indepth understanding of various products and investment assets, and is able to provide your company with a valuation of entire portfolios, at either theoretical values, or at market values.  This can be done for either the fund acquirer, or for the fund seller who would like to prepare itself for such process.