Since the 2008 crisis, mid-sized companies have often come up
short when it comes to growth finance, due to banks lowering their
levels of debt financing and opting instead for more established
borrowers. Combine this with the high price of assets nowadays, and
the low-interest-rate environment, and we find companies—and
indeed everyone—looking high and low for new sources of
The fruits of these searches are increasingly in the same area:
Debt funds are on a serious uptick in Europe, with more and more
deals each year since 2008. But why debt? Its success seems to have
come about by a convergence of private equity and real estate:
those in private equity have the experience in debt financing,
while those in real estate are finding real estate too pricey to
get to their desired yield and have thus also sought refuge in debt
investment. Debt investment can also be less risky than owning the
real estate outright if done properly, which has further driven
them in this direction.
Further enticing new investors in debt has been the void left in
the market by banks, who are stepping out of the real estate game
on account of the changing regulatory environment. This opens the
way for pension funds, insurance companies, private equity
investors, and others to take advantage of the high yields and safe
returns of debt.
Identify, specify, classify
We've even seen debt funds gaining layers of specialisation
in their post-2008 boom. Some get into debt funds by buying loan
books from a bank or other lender, while others coinvest with a
bank that's looking to reduce its exposure. Specialised
managers have furthermore emerged to create new types of lending
vehicles in response to the will of the market. Among these are
bridge loan financing, currently very popular in North America,
which involves helping borrowers to either roll over their loan at
favourable terms or borrow to purchase new property. Then there is
peer-to-peer lending now being established through securitisation
vehicles, which draws on a crowdsourcing model. New lenders are
also stepping in to assist cash-strapped governments worldwide in
their need to fund the refurbishment and construction of
infrastructure. And finally there are real estate specialists or
investment managers who are simply making loan investments instead
of buying the asset directly.
Raving about the RAIF in Luxembourg
Luxembourg has a history of finding new solutions for investors
with the help of its flexible and efficient legal/regulatory/tax
environment. In this case the history is barely history: earlier
this year a new investment vehicle dubbed the Reserved Alternative
Investment Fund vehicle, or RAIF, was launched. The RAIF is made to
be simple: it can be launched without prior approval from the CSSF
(Luxembourg's regulator), it offers a high level of investor
protection (with the AIFMD quality seal), it has access to a
marketing passport, and it possesses a high level of structuring
click here for even more advantages.
Depending on the investor's tax residency, a well-structured
RAIF could be a very efficient way to convert interest income into
capital gains—which are generally more favourably taxed.
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The SuperReturn International series consists of 15 annual international private equity & venture capital events held in Europe, Asia, Africa, Middle East and the US. This happens to be the European event for the year. Spread across five days, starting from 27 February, the largest private equity event worldwide will take place in Berlin this year.
Some of the main subjects being discussed at this year’s conference are; The Geopolitical and Economical happenings of the last 12 months, Innovation Disruption & Tech Expertise and many more. As previously eluded to, there will be over 400 presenters, all bringing their own perspective and stance on specific topics to the table. Companies such as Google, Visa, Bloomberg and many more will all be represented throughout the five days.
KPMG Associate Partner, Nic Müller, will be speaking on 28 February at 3pm: “Why invest in the mid-market today”.
Given the societal challenges and environmental issues we currently face, the circular economy concept has rapidly been gaining in importance. This is why the Luxembourg government is pressing ahead in setting up the framework for the third industrial revolution, in which a circular economy is a key pillar.
The International Accounting Standards Board’s (IASB) insurance contracts standard, IFRS 17, is expected to significantly affect data requirements and the systems and processes used for data collection, actuarial projections, and on calculating and accruing interest.
In discussion with insurers around the world, we found that most expect to face challenges accessing and handling data of the right quality and granularity under the new standard. And many see significant effort associated with capturing, storing and analyzing this information given historical data quality and the use of legacy systems.
In the third of our webcast series - Impacts of IFRS 17 on data, systems and processes - we will share practical examples of how the forthcoming standard may impact an insurer’s current systems architecture. In addition, we will explore the data that will be required and how the standard will influence new estimates, computations and processing. We will also share lessons that we have learned from helping insurers through Solvency ll and the importance of developing a data management policy early on.
The Ministry of Financial Services, Commerce and Environment has prepared 11 bills to strengthen Cayman's regulatory framework, introduce new financial services vehicles, and improve the local business environment.
Over 150 attendees from both New York and the Cayman Islands recently gathered at the 4th annual Cayman Finance New York Breakfast Briefing held at the Harvard Club of New York City at which Cayman Finance CEO Mr Jude Scott described Cayman as "the premier global financial hub".
This article will explore existing real estate property management solutions, focusing on the top private equity real estate platforms in the marketplace, including subject matter expert's viewpoints on the existing software infrastructure.
Of those assets there is a wide range, including hedge funds, private equity, debt and property funds.
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