How much do hedge funds sell for?

Coming from the startup world where exit strategies are the norm, I am curious, what are the exit strategies for hedge funds? What type of valuation is given (other than AUM) to a smaller hedge fund or prop shop that wants to be acquired by a big bank or another large hedge fund?

4 Comments
 

The only thing you could sell is the algos.

Seeming as most of the value driver is the people I doubt you would get high multiples as the risk of them leaving is too high. Likewise you could just poach the staff you want rather than buy the firm.

 
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