Category Archives: WEEKLY SPIN

Going with the flow

Private credit managers will doubtless be extending a debt of gratitude to investors for their continued commitment to investing in the asset class. According to Moody’s research, fundraising is going from strength to strength, with inflows up 72% over the last 12 months. AUM has also risen 8% in the first six months of 2024, putting private credit at the head of the pack and giving plenty of reason for fundraising teams to celebrate. As more investors get behind the 8-ball, private credit is proving to be the most resilient alternative asset class in the current macro environment. Asset managers are getting on board to meet this demand, including BNP Paribas who launched an evergreen ELTIF this week. Right now, private credit is ‘going with the flow’.

Inspired by Alternative Credit Investor

Ares prepares NFL splash

Ares Management is hoping to make a big splash in the NFL with news that the global private equity firm is reportedly looking to acquire a 10% minority stake in the Miami Dolphins. The deal also includes billionaire Joe Tsai, co-owner of the NBA’s Brooklyn Nets and the WNBA’s New York Liberty, who would receive a 3% ownership stake. This could be a huge catch as the deal also includes the Hard Rock Stadium and the Miami F1 Grand Prix race. This development follows recent news that the NFL had agreed to allow outside investors to take ownership stakes in what is one of the world’s most highly lucrative sports leagues. More NFL teams will doubtless be looking for their own liquidity events in the coming months, as private equity firms go on the offense and make a bid for their end zone celebration.

Inspired by CNBC

Ready>Set>Co(invest)

CalSTRS is getting ready to Go Go Gadget its co-investment arms after the pension’s investment committee agreed to remove the provision for third-party approval on co-investment deals under $250 million. The decision comes as CalSTRS seeks to incorporate more co-investments and direct investments in its private equity portfolio. This will help investment staff move into higher gear and act quickly to close on deals without needing to wait for external valuation approvals. The decision is likely to signal Lift Off for the US pension plan, which has already constructed a platform in excess of nearly 100 deals. With more speed and agility at their disposal, the race is now on to seek out the best GPs to partner with.

Inspired by PitchBook

From stocks to stakes

Carmignac has reached a new milestone, as it expands beyond public markets with the formal introduction of a private equity strategy, Carmignac Private Evergreen. This is Carmignac’s first foray into private markets having last year invested its own capital as a cornerstone investor in secondaries firm, Clipway. The new fund is a semi-liquid offering and sees the firm expand from stocks to stakes, with Carmignac Private Evergreen designed to invest across private equity secondaries via co-investment deals. Even more appealing to investors is that there will be no management fees and no carried interest. No kidding! Carmignac has seeded the fund too, to ensure strong alignment of interests with investors. Direct co-investment opportunities will also be pursued as Carmignac embarks on its new adventure. Don’t forget your compass!

Inspired by Carmignac

Rock Solid Opportunity

BlackRock is entering into a new relationship with Swiss-based private equity firm Partners Group to open up the world of private markets to wealthy investors. The plan aims to help BlackRock scale its exposure to private markets by creating a model portfolio, designed to enable wealth advisors to give HNW individuals exposure to multiple asset classes in a single offering. Investors will be able to select from three risk profiles across BlackRock’s private equity, private credit and systematic funds, and Partners Group’s private equity, growth equity and infrastructure funds. This is the latest powerhouse partnership as asset managers seek to broaden their private markets footprint by joining forces with leading GPs. State Street has also announced a partnership with Apollo to launch an exchange-traded fund and other products focused on private credit. As was noted during IPEM Paris 2024, the democratization of private markets represents a significant opportunity over the coming years. With BlackRock joining the party, the future looks bright for individual investors.

Inspired by the Wall Street Journal