Asset management

Capital Calls: Hedge funds, Rogers, Inmarsat

8 Nov 2021

Concise views on global finance: The industry’s assets are above a new threshold, but it’s a business reaching a limit; the head of the Canadian telecom giant has won a court victory; U.S. rival Viasat pulls the UK-based satellite operator into its orbit for a pricey $7.4 bln.

Credit Suisse bland revamp has a valuation penalty

4 Nov 2021

Chair António Horta-Osório is moving $3 bln of capital from the investment bank to wealth management. But he’s keeping most of the error-prone unit, which chews up capital and has few synergies with the rest of the bank. The clunky structure cements a share price discount to UBS.

T. Rowe Price makes alt the new mainstream

28 Oct 2021

The money manager’s $4.2 bln purchase of loan specialist Oak Hill Advisors gives it a perch in the hot $1 trln market for private credit. Returns in that field may come down as investors pile in or growth suffer as rates rise. But T. Rowe is being characteristically cautious.

Lloyds’ capital cannon is best aimed at investors

28 Oct 2021

New CEO Charlie Nunn is plotting a revamp of Britain’s largest lender. He may be tempted to use the bank’s 4.6 bln pounds of spare capital to bulk up in wealth management or insurance. His group’s low valuation suggests investors would rather have the money themselves.

UBS’s U.S. wealth management push lacks oomph

26 Oct 2021

The Swiss bank plans to lend more to wealthy clients while reaching new ones through a digital service. That should boost margins in the region but faces competition from rivals like Morgan Stanley. CEO Ralph Hamers would be better off bulking up through M&A, or selling out.

Capital Calls: Apollo, god of basically everything

19 Oct 2021

Concise views on global finance: The asset manager firm’s new CEO Marc Rowan wants to oversee $1 trillion in funds by 2026. The market is at least giving him credit for trying.

Capital Calls: Green investors, ASOS, Renren

11 Oct 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

BlackRock brings shareholder democracy to the few

7 Oct 2021

Clients with a combined $2 trillion of index-fund investments will get more say on how votes at underlying companies are cast. It’s only for large institutions, and many will stick with the status quo. Bigger change would come if CEO Larry Fink offered the same to all investors.

Funky fund IPO puts premium on Goldman factor

21 Sep 2021

Petershill, which owns stakes in buyout groups and hedge funds sourced by the Wall Street firm, is targeting a value up to $5.9 bln. That’s much more than the value of its assets, and closer to a listed investment manager. Investors are placing their faith in Goldman’s contacts.

Pricey private equity IPO rides road and rail boom

16 Sep 2021

French Infrastructure boutique Antin is raising 550 mln euros in Paris. It’s a chance to profit from Europe and America’s plans to boost investment, though closely held shares mean investors only get a passenger seat. Stellar growth is needed to justify a 4 bln euro valuation.

Fund investor’s IPO depends on Goldman connections

6 Sep 2021

Petershill, which buys stakes in buyout and hedge fund managers, is planning a $5 bln listing. It’s a punt on the enduring boom in alternative assets. It also depends on whether the Wall Street firm, which manages the portfolio, keeps finding attractive new firms to invest in.

Private credit gets bigger but not better

1 Sep 2021

Pension plans and insurers are pouring money into esoteric loans that aren’t widely traded. Set up by money managers like Blackstone or Apollo, such funds offer high yields and lower losses than public debt. Yet rapid growth may herald lower returns and bigger risks.

DWS greenwash probe could be ESG tipping point

26 Aug 2021

The German asset manager’s shares slumped 12% amid a U.S. investigation into alleged overstatement of its green credentials. A lack of consistent ESG metrics and terminology is a long-running, sector-wide problem. The desire to avoid similar attention could fast-track a cleanup.

Goldman’s European fund foray may be a taster

19 Aug 2021

David Solomon’s bank bought Dutch insurer NN Group’s asset management arm for 1.6 bln euros. It gives it a boost in sustainable investing, but the real benefit looks like greater scale at a time of slow growth. On that metric, Goldman probably needs to do more deals.

Capital Calls: Olympics on TV, Abrdn

10 Aug 2021

Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.

Review: WeWork’s debacle had many enablers

6 Aug 2021

Founder Adam Neumann led the hyping-up of the office-sharing upstart, once purported to be worth nearly $50 bln. But he was far from alone. “The Cult of We” by Eliot Brown and Maureen Farrell exposes how banks, return-chasing investors and the media danced around the red flags.

Allianz’s DOJ tangle will mostly hit M&A ambitions

2 Aug 2021

The $95 bln insurer’s shares fell 10% after it warned a U.S. Department of Justice probe could materially impact earnings. Allianz boss Oliver Baete has a sturdy enough balance sheet to withstand a substantial hit. It may mean fewer deals to augment his growth strategy, though.

Capital Calls: Bank mergers, GlaxoSmithKline

28 Jul 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.

Big “transition” funds reflect climate realism

27 Jul 2021

Brookfield has kicked off a new investment vehicle with $7 bln from backers like Ontario Teachers and Temasek. Like another fund from TPG targeted partly at helping traditionally dirty industries change, it’s a recognition that most decarbonization efforts can’t be pure green.

Capital Calls: Duolingo IPO valuation

26 Jul 2021

Concise views on global finance: The language learning app has increased its price by almost 20%.