Alternative, Asian managers to dominate M&A activity

Alternative managers, international and Asian managers and financial technology firms will attract most M&A activity this year, according to a new report from Jeffries Putnam Lovell.

In a slightly subdued market due to fallout from the credit crunch in the US and elsewhere, demand for “;higher growth alternative investments”; will remain solid, the broker and research firm says in a report called ‘All Shook Up’. The firm says 2008 will be “;vibrant”; but unlikely to match 2007’s US$51.2 billion in 241 transactions globally. “;A group of prospective sellers will elect to wait for sunnier markets, and resurrected record profits, before running to the auction block,”; the report says. Buyout firms will continue to shop aggressively in the asset management and financial technology aisles by offering equity-heavy deals. “;Financial technology firms will continue to attract attention from strategic buyers, as exchanges gird themselves for conflict with alternative trading venues, custodians look for the differentiating edge and buy-side firms seek further methods of out-trading a subprime-ravaged sell-side,”; the report says. Alternative asset managers are likely to account for a record proportion of deals in 2008, as long-only managers step up their search for shorting skills. Jeffries Putnam Lovell believes that public markets – there were 11 large IPOs in 2007 – will remain a viable source of liquidity. Multiples paid for quoted managers globally will rebound with a broad market. Cross-border transaction activity will continue to drive a growing proportion of deal activity. “;Asia’s long-term promise remains bright and US asset managers must fulfill their customers’ voracious demand for international securities,”; the report says. The report was written by Ben Phillips, managing director and head of strategic analysis with Jeffries Putnam Lovell.

, , , , , , , , , , ,

Leave a Comment

Suspensions and redemption queues ‘speed bumps’ on private credit road: Blue Owl

Asset owners are right to be concerned about private credit fund suspensions and redemption queues, Blue Owl head of alternative credit Ivan Zinn told the Investment Magazine Fiduciary Investors Symposium, but he thinks that two years from now they’ll be looked back on as nothing more than a “speed bump” on a highway of growth and strong returns.

Sort content by