Referring to todays stock and corporate prices as bargain basement, the chief executive officer of
Opportunities for acquiring firms are now pretty strong, said Martin Gilbert. Funds-of-hedge funds and funds of private equity are a lot cheaper than they were six months ago, and they are significantly cheaper than they were two years ago.
Funds-of-hedge-funds, for example, were selling for 15% of assets under management two years ago, Gilbert said. They are now down to very, very manageable levels, very attractive levels, and a lot of them are subscale, so I think there is an opportunity to consolidate in that area.
He added: There is an amazing number of people talking to each other in the funds business. We certainly feel that we are among the acquirers rather than a business going to be acquired during the market downturn.