Merger arb funds step up to the plate

return to M&A's new dealmakers set to take the stand

return to M&A’s new dealmakers set to take the stand

A massive allocation shift out of long-only public market investment vehicles and into alternative investments means that hedge funds are playing an increasingly dominant role on the buy side – particularly in determining the outcomes of M&A transactions. 

Although merger arbitrage funds, a type of special opportunity vehicle, represent perhaps less than 10% of the total alternative investment universe, they take a big share of high-profile M&A deals, routinely snapping up more than half the free-floating equity.

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