As the human and economic toll of the coronavirus mounts, no sector of the economy has been immune from the downturn, and this includes family offices. Like any industry sector, family offices are facing challenges in managing the crisis. For instance, employees working from home was uncommon in the past because of the cost of technology improvements. But ... READ MORE >
As leveraged loans rise, so do risks for middle market companies
A storm is brewing in the corporate debt market, and it has the potential to threaten the middle market. With the amount of easy capital surrounding this sector of the economy, midsize companies have bitten off more than they can chew if the business cycle were to hit the brakes. And with recent geopolitical events and the coronavirus outbreak, the middle ... READ MORE >
As hedge funds struggle, money flows to limited stakes in private equity firms
Amid the soaring markets of the past few years, some in the asset management community have faced a conundrum. Investors have demanded better performance, but asset managers who pursue alternative strategies, like hedge funds, have struggled to keep up. The result is that many hedge funds have closed down, rolled up into a family office or returned ... READ MORE >
SEC brings clarity to accredited investors and family offices
Every four years, the Securities and Exchange Commission is required by the 2010 Dodd-Frank law to modify the rules protecting investors. The original protections were put in place in 1982, but with the relentless pace of change in innovation, technology and investment options, those rules may quickly become outdated or irrelevant. This is ... READ MORE >
Family office direct investing is on the rise
According to a study by Campden Wealth, an independent research company, family offices manage about $4 trillion globally. That amount is growing as more families sell out of their founding businesses and, with the proceeds, look for opportunities in wealth preservation, philanthropic activities and increasingly, asset management that includes direct ... READ MORE >
Foreign investors eyeing U.S. companies may want to learn more about CFIUS
For a very long time, the United States has attracted direct investment from overseas. For America, this meant more capital flowing into domestic businesses and the creation of more jobs. As the trade war between the United States and China has escalated, however, a little-known U.S. regulatory body that has traditionally operated behind a veil is becoming ... READ MORE >
Latest C-corporation conversion announcement follows trend with largest alternative asset managers
Carlyle Group LP, among the world's largest private equity firms, is expected to announce it conversion to a C-corporation from a publicly trade partnership during its second-quarter earnings call on July 31. It is the latest alternative asset manager to make the conversion following peers that include Apollo Global Management LLC, Blackstone Group LP, Ares ... READ MORE >
SEC’s move to redefine high-net-worth investors may broaden investor base down the road
A new government proposal to loosen restrictions on who qualifies as high-net-worth individuals known as accredited investors could be a boon to asset managers seeking new sources of capital. The U.S. Securities and Exchange Commission issued a concept release on June 18 requesting public comment on several exemptions from registration under the ... READ MORE >
Rising interest rates seen causing asset managers to recalibrate
Policymakers believe the economy is on a strong footing, but the pace of rate increases going forward remains uncertain, and the effects on asset management could be significant. The Federal Open Market Committee is set to meet on Dec. 19, and an interest rate increase of 25-basis-points appears to be 75 percent likely, according to Bloomberg analysts. ... READ MORE >