Asset managers must develop institutional resilience to emerging challenges in an increasingly unstable and unpredictable world. The 'Survival of the Fittest' playbook, launched today, explores how they and their investors can best adapt to this fast-changing environment.
The guide is a collaboration between TMF Group, a leading global provider of compliance and administrative services; Schroders, a global asset manager; and Drawbridge, a cybersecurity software and services provider.
It focuses on three key areas:
Adapting to new liquidity challenges
New financing solutions, such as GP-led secondaries and NAV lending, are rapidly emerging in private markets to solve liquidity and capital pressures on both LPs and GPs in a changing private equity environment. Howard Eisen, Global Account Director of TMF Group's Fund Services practice, explores how, managed correctly, these can create effective outcomes and even benefits to all parties.
Necessity is the mother of invention — and the necessity that has led to these inventions is liquidity. Liquidity is among the biggest issues facing the LP community and therefore, by extension, it's a challenge for the GP community too.
Building resilience to cyber threats
How can managers best mitigate risks to their firms and investors? What do allocators and regulators need to see? What are some ways to build operational resilience? Simon Eyre, Chief Information Security Officer at Drawbridge, sheds light on these questions.
Allocators and LPs are increasingly clear about two important points for those managers that they allocate to. First, cybersecurity governance should be approached in the same vein as accounting, finance and auditing — with an independent check and balance. Second, investors view cyber threats as a potential drag on their returns, and they want managers to proactively and transparently lower the risk they pose to their LPs.
Navigating a world of geopolitical risk
Geopolitical risk has become a top concern for asset managers and investors. Ways for managers to effectively incorporate geopolitical risk awareness and analysis into their investment management and business management strategies are presented by Gonzalo Binello, Head of Latin America within the Americas Client Group at Schroders. Binello also looks at how they can best construct their portfolios and position their investors to build the strongest protection against risks.
People need to think about the diversification of their portfolios and how they are assessing and monitoring different asset classes, sectors and geographic regions. You need to build your risk models and analytics to identify and quantify the values of all these risks — market risk, credit risk, liquidity risk, regulatory risk and geopolitical risk.
This guide brings together the expertise of three multinational companies, all with the same goal of providing value to asset managers around the world.