These are flush times for American private equity funds. Through November, they have raised more capital than any other fiscal year. But a good portion of that cash has not been put to use – yet. One reason is that many takeover targets have simply become too expensive, a dynamic reflected in the drop in deal activity for 2019. According to RSM Bloomberg, ... READ MORE >
Financial Services
Comprising everything from private equity firms to family offices, financiers are active participants in the middle market. They provide the vital capital infusions needed to take growth companies to the next level.
As large ETF sponsors capture more of a surging industry, can the middle market keep up?
Exchange-traded funds, which have existed for just over a quarter century, have indeed come of age as an investment product. With approximately $4 trillion in assets under management and more than $1 trillion in net inflows over the past three years alone in the United States, ETFs have been propelled by the rise in popularity in passive investing over ... READ MORE >
Buzz on pot legislation fades as focus turns to vaping
It was a rare source of consensus in a divided Congress: in September, the House of Representatives passed a bill designed to ease the flow of money to cannabis companies around the nation. By stripping away federal penalties on providing financial services to these businesses, the bill would go a long way to grease the financial gears of a budding ... READ MORE >
In the free-for-all among retail brokers, will the middle market be left behind?
Charles Schwab Corp. announced recently that it would eliminate trading commissions for retail investors, making Schwab the latest Wall Street broker to embrace the push to zero commissions. But with $3.75 trillion in assets, Schwab is in a position to make such an aggressive move. Like other larger retail e-brokers, Schwab is capitalizing on its scale ... READ MORE >
Passive investing reaches a milestone, surpassing value of active counterparts
For years a profound shift has been taking place in the financial community as individual investors have increasingly favored a passive, low-cost approach over the traditional actively traded assets. Last year, that shift reached a significant milestone as the value of assets under passive management surpassed the value of active investing assets. For ... READ MORE >
Opportunities for insurers in a low yield bond environment
Lower yields on bonds, underscored by an inverted yield curve and 10-year rates below 2%, are cause for insurance companies to reevaluate their fixed-income investment positions. Due to their higher reinvestment frequency, property and casualty, and health insurers, should be more reactive to lower yields in the short term. Life insurers, on the other hand, ... READ MORE >
Public scrutiny over ESG holdings will cause universal reporting change
As environmental, social and governance investing continues to grow in popularity, investors need to carefully evaluate how their holdings will be viewed by the public. Asset managers must balance their desire to promote ESG consciousness with their fiduciary duty to drive financial returns. ESG funds under management increased to $60 billion through June ... 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 >
Low rate environment poses challenge for banks
On July 30, the Federal Reserve announced a 25-basis-point reduction in the federal funds rate. Federal Reserve Chair Jerome Powell characterized the move as an “insurance” cut to help extend what is now a record-long U.S. economic expansion amid economic headwinds related to a slowing global economy and an inversion of the yield curve, which many market ... READ MORE >