Bruno Alves’ Post

A few thoughts from me on BlackRock's $12.5bn deal for Global Infrastructure Partners - with Margaryta Kirakosian

The topic of private equity's dealflow in the private markets asset advisor/manager space has been frequently discussed, as there is often a concern with client service levels/alignments with ownership changes, as well as risks of talent departures. The acquisition of Ohio-based real assets specialist The Townsend Group by $14 billion+ AUM Cleveland-based middle market specialist The Riverside Company, one of the most consistent managers across market cycles, is no doubt remarkable on this topic. Prior to Aon, The Townsend Group had been owned by real assets fund manager Colony Capital, Inc. An interesting divestitute from Aon, who only recently acquired The Townsend Group in 2017, and in 2023 acquired NFP, an Aon company, who also has leading middle market fund of funds and advisor Fiducient Advisors. MLC Australia Private Equity, the wealth management division of NAB Bank, and Cleveland’s Ten Capital Management are co-investing in The Townsend Group alongside The Riverside Company, with Ten Capital Management having advised its partner on the transaction. The Townsend Group advises #pensionfunds, #insurancecompanies, #sovereignwealthfunds, #endowments and #foundations on #property investments. The firm currently advises clients with real assets in excess of $218 billion. As these trades of asset advisors continue, what will be the ongoing effects on client service and engagement? I know of several other potential deals as there is also no doubt an abundance of private markets advisors. #alternativeassets #privatemarkets #acquisitions #fundmanagers #clients #investors #capitalmarkets https://lnkd.in/gBEsgN7h

The asset management industry is in constant flux and its tumultuous changes need to be tackled with resilience and expertise. The recent hike in interest rates is one of these changes and has impacted private equity, venture debt and M&A. Crestbridge's Head of Ireland, Andrea Lennon, shares insights into the current interest rate cycle, new innovations and evolutions, and future predictions in asset management. If you're subscribed to International Investment, read the article here 👉 https://lnkd.in/eR4DsWy3 #FundAdministration #InterestRates #FundManagement #Ireland #FinancialServices

Alternative asset manager Blue Owl Capital (OWL.N), opens new tab  said on Tuesday it will buy Prima Capital Advisors for $170 million to expand into real estate financing, a market that traditional banks have been retreating from since last year. Investment firms have been rushing to grab a bigger slice of the commercial real estate market as traditional lenders, which are subjected to harsh regulations, back out on fears of rising defaults due to low occupancy and high interest rates. The Prima deal that is expected to close in the second or third quarter of 2024 marks Blue Owl's second acquisition this month. Last week, it agreed to acquire Kuvare Asset Management for $750 million. The Prima deal will be financed with $157 million of equity and $13 million in cash, and the company's investors could also be eligible for an additional $35 million in equity, Blue Owl said, depending on the future performance of the business. Blue Owl said Jesse Hom, previously the global head of real estate credit at Singapore's sovereign wealth fund GIC, will lead its real estate finance strategy. Source: Reuters #BlueOwlExpands #RealEstateFinance #AssetManagement #InvestmentGrowth #FinanceExpansion #StrategicPartnerships #FinancialInnovation #MarketExpansion #InvestmentOpportunities #BuildingTheFuture

Blackrock is paving the way to simplify and broaden private markets investing to make it more accessible. Embracing private markets asset management is the new frontier in wealth management! #PrivateMarkets #AssetManagement #WealthManagement

Howard Marks’ Oaktree Capital Management, L.P. core Special Situations team wraps up $3bn fundraising for Fund III with oversubscribed audience. A blend of equity and debt strategies, the team is headed by experienced veteran co-PMs Matthew Wilson and Jordon Kruse. Looking forward to seeing the first order of business for the new fund. Follow for more insights into private credit. #privatecredit #privateequity #investmentbanking #investing #credit #fundraising

There are 2,035 private equity real estate funds available in the market, according to Preqin data (as of mid-2023). While private real estate investment trusts (REITs) are becoming an increasingly attractive open for individual investors for frequently offering higher returns than publicly traded REITs, there is little publicly available data on their historical performance and returns. We used data from The Alternatives Investor Returns Database to rank the private real estate investment funds that generated the highest returns, for vintage years 2016-2019: 1. BREP IX (Jun 2019 / Aug 2022) by Blackstone 2. CRP VIII (Aug 2017 / Oct 2021) by The Carlyle Group 3. Real Estate Partners Americas II (2017) by KKR 4. Oak Street Real Estate Capital Fund IV by Blue Owl Capital 5. Open-Ended Industrial Real Estate Fund by Ares Management Corporation 6. Real Estate Partners Americas II (2017) by KKR 7. Blue Owl Real Estate Fund IV by Blue Owl Capital 8. BREP Europe VI (Oct 2019 / Apr 2025) by Blackstone 9. BREP IX (Jun 2019 / Aug 2022) by Blackstone 10. LREP VIII by Ares Management Corporation https://lnkd.in/egu5Rrt5 You can use The Alternatives Investor Returns Database to check out the yields generated by various funds and firms across private credit, private equity, private real estate, and private infrastructure investments: https://lnkd.in/dWz5CZZn #realestate #realestatemarket #realestateinvesting #realestateinvestment #realestateinvestor #privatemarket #privatemarkets #alternativeinvestments #alternativeinvestment #alternativeinvesting #returns #returnoninvestment #roi #yields #topperformers

Jefferies #PrimeBrokerage services over 550 private funds across 347 firms as of October 2023. 📈The service provider added 8 new firms in 2023, including Florida based Merion Road Capital Management Llc Capital Management (with $21M in AUM). Some of the largest clients of Jefferies include: 📊Mariner Investment Group, LLC AUM: $180.B No of funds services by Jefferies : 1 📊Elliott Investment Management L.P. AUM: $73.5B No of funds services by Jefferies: 2 📊Clearlake Capital Group AUM: $59.6B No. Of funds serviced by Jefferies: 6 📊Lighthouse Investment Partners, LLC Partners AUM : $55.8B No. Of funds serviced by Jefferies: 1 Read the full piece here: https://hubs.ly/Q026nC6x0 #funds #primeservices #jefferies #hedgefunds

Want to know the real numbers behind raising private capital in the world of real estate and private equity? This isn't legal or financial advise, only sharing the estimates of deals and data that I have personally reviewed. Commonly, capital raisers will raise equity in a fund of fund structure or what is called a special purpose vehicle. The fund of fund manager will typically take 1-2% of the capital raised as a fee for structuring the fund. For example, if the fund manager raises $1m, they may take $10,000-$20,000 of profit upfront. A fund manager may also charge an equity under management fee or servicing fees to cover ongoing expenses, commonly I have seen this be between .5%-1%/year: - investor portal - fund administration - K1s (can be covered by this cost OR billed back to the fund as an expense) On that same $1m equity raise, the fund manager would take $5,000-$10,000/year, with a significant portion, if not all going to cover expenses. In real estate, there is a common practice of a preferred return, meaning the first portion of profits (typically 6-9%) go to the investors then the remainder is split between the FoF manager and their investors. The bulk of the profits for FoF managers should be here. For example, an 8% preferred return and an 80/20 split - in favor of the investors. The FoF manager earnings in this portion is largely dependent on the success of the deal itself. The projected range of earnings I have seen here (on a $1m raise) are between $60,000-$150,000 if the deal hits the projected returns. Fund Manager Total Potential Profits on a $1m Equity Raise on a 5 Year Hold Syndication: Acquisition/Closing Fee (Upfront): (1-2% total fund size) $10,000-$20,000 AUM/EUM Fee (Ongoing): (0-1%/yr) $0-$10,000/yr - this goes towards overhead/costs Promote (At Exit): $60,000-$150,00 (Tied to performance of the project, can be ZERO) Total: $70,000-$220,000 #capitalraising #syndication #fundoffunds

Interesting read from my colleagues Lauren Falkowitz and Ben Yeoh! #goodwinlaw