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Laxman Pai, Opalesque Asia: Many of the U.S.-based alternative investment managers (alt IMs) had their best fundraising periods on record in the second quarter, said a study.
Investors searching for yield amid persistently low-interest rates led to record fundraising for alt-IMs in 2Q, according to a report by Fitch Ratings.
Several firms logged their best fundraising periods on record - Apollo's inflows were primarily driven by transactions in its insurance platform, without which inflows would have still totaled a strong $16 billion in 2Q.
Other record capital raises included BAM at $23 billion, which included Oaktree's $12 billion fundraise for its next flagship distressed credit fund, and KKR at $16 billion, including approximately $9 billion raised for its Asia PE strategy.
Ares had one of its strongest fundraising quarters, at more than $9 billion, including the first close on its sixth flagship PE fund along with capital raised across several credit strategies. Record fundraising drove aggregate fee-earning assets under management growth, which were up 9.1% QoQ after falling 1% sequentially in 1Q20.
Alt IMs generate some of their best returns in vintage years
Fitch said that despite rebounds in fund performance, some firms recorded impairment charges on investments in energy and other sectors heavily impacted by COVID-19. Still, returns on current vintage investments could be substantial, given investment opportunities provided by t...................... To view our full article Click here
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