Wed, May 18, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Alternative asset managers bullish on 2019 fund rising environment: Fitch

Monday, January 14, 2019

Laxman Pai, Opalesque Asia:

Fundraising should remain strong in 2019 as investors seeking higher yields in a low-interest-rate environment are broadly interested in the space, Fitch Ratings reported.

However, alternative asset managers are seeing rising levels of uninvested capital as realizations and investment opportunities slow amid higher valuations, the rating agency added.

According to the report, growth in fee-paying assets under management (FAUM) was strong in 2018, as fundraising outpaced exit activity.

"Management fees for the rated peer group rose 9.1% for the trailing 12 months (TTM) ended Sept. 30, 2018 from the same period in the prior year, supported by strong FAUM expansion," it said.

Carlyle, KKR, Apollo and Ares saw double-digit management fee growth during the TTM period, driven by robust fundraising in various strategies.

Management fee rates for the industry are expected to trend downward as firms continue to diversify into lower-yielding credit and real estate funds and permanent capital vehicles (PCVs).

Fees as a percentage of FAUM were relatively flat at 0.89% for the TTM ended 3Q18. Apollo was lowest at 0.72% due to the lower advisory fees charged on insurance assets, with Ares at the higher end of peers given its lower exposure to CLO-related AUM.

PCVs should be a continued focus given the growing trend of alt-IMs to employ longer-duration vehicles in an effort to increase management fee stability and investment flexibility......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  3. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  4. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm

  5. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year