Keep on Rockin’ in the Fee World

November 17, 2020 In 2015, the Swiss financial services firm UBS conducted over 7,000 interviews with retail investors in an effort to establish what motivated them. Their findings from the interviews were the inspiration behind a global  advertising campaign to show how UBS had become more client-focused than ever. The campaign featured actors playing the roles of people at different …

The World Outside Apollo

August 24, 2020 The first known example of an advertisement for laundry detergent was in 1876. Henkel and Company – these days known as the parent company of Persil – took out a full-page advertisement in a Cologne newspaper, informing readers about how laundry detergent would make their linen whiter than mere soap ever could. Nearly 150 years later, in …

Distressed vs. Stressed: There is a difference

July 20, 2020 Making the distinction It pays to know the history of an asset. This will allow you to see past the glossy marketing pitch for the latest ‘opportunity fund.’ Private equity companies will be happy to call it a distressed asset and let you think that they acquired it last month. If they dragged the company into this …

Looking For Yield In All The Wrong Places

June 16, 2020 “I would never buy debt at below zero.  Never, not at below zero…not in my entire life. I would do anything before I’d buy debt at negative rates.” – Jamie Dimon, Address to Institute of International Finance, October 2019 Over the last several years, we have recognized what has been going on with negative or near negative …

Where Does Private Credit Go From Here ? – (Part Two)

June 3, 2020 “Be fearful when others are greedy and be greedy when others are fearful.” – Warren Buffett, Annual letter to Berkshire Hathaway Investors What now? Leon Black might be the patron saint of private lenders. As analysts have scrambled to assess the damage wrought by months of lockdowns across the world, the leader of the world’s largest private …

Where Does Private Credit Go From Here ? – (Part One)

May 26, 2020 What now? “Since Apollo was founded in 1990, we have been through four downturns and 40 per cent of all our money has been invested in down cycles, when everyone else shut down.” – Leon Black, Founder of Apollo Global Management Leon Black might be the patron saint of private lenders. As analysts have scrambled to assess …

Who Needs a Bank? Why Direct Lending Is Surging

What’s direct lending? Old-fashioned bank lending — without the bank. As tougher regulations reshaped the post-financial crisis landscape, traditional banks have cut back on business lending. That’s created a raft of opportunities: For a growing group of asset managers who are making the loans; for borrowers, including not only mid-sized companies but some big enough to tap the syndicated debt markets if they wanted; …