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Laxman Pai, Opalesque Asia: New research revealed that the outlook for alternative investment managers in 2025 is brightening, despite an improving macroeconomic environment and ongoing industry trends.
According to Fitch Ratings, alt managers are enjoying solid growth momentum heading into the year ahead, thanks to an improving macro environment coupled with an ongoing shift of capital from the traditional banking system to the shadow banks, and "tailwinds supporting the further penetration of the private wealth channel…"
An improving macro environment and stronger transaction pipeline led Fitch to revise its 2025 sector Outlook for Alt-IMs to 'neutral' from 'deteriorating'.
According to Senior Director Dafina Dunmore, Fitch's recent peer review (including 11 affirmations; one Outlook revision to Positive) reflected a resilient business model that has produced durable earnings for Alt-IMs. That said, Fitch highlights an increasingly competitive landscape and continued geopolitical risk as counterbalancing factors.
Dunmore pointed to solid credit fundamentals among its rated universe of Alt-IMs, partially driven by the continued scaling and diversification of their platforms, which she says is likely to continue, given solid fundraising pipelines, an accelerated pace of deployment, and opportunistic M&A.
Business development companies (BDCs) head into 2025 with a more guarded outlook with Fitch maintaining a 'deteriorating' sector outlook. Senior Dir...................... To view our full article Click here
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