From the rise of global impact investing to Brexit driving UK hedge fund investments offshore, we provide a round-up of some of the news stories that have got us thinking this week. Please note, some of these sites may require a subscription to view the article.
Impact investment reaches more than half a trillion dollars in assets
A study by the Global Impact Investing Network (GIIN) has found that global-impact assets under management have grown to a record $502bn as of December 2018. TPG is currently raising capital for The Rise Fund II. Should it hit its target of $3.5bn, it would become the largest impact-investing fund ever raised, having successfully raised $2.1bn with The Rise Fund.
Source: Private Equity News
Hedge fund backer makes high-stakes offer in Europe drive
Prelude Capital Management has hired former Bank of America Corp. prime brokerage executive Adam Karp to lead its expansion into Europe. Karp will act as the first Prelude employee in London. Prelude specializes in first-loss investing and has previously allocated to hedge funds including John Paulson and Kyle Bass.
Number of Dutch pension funds will soon fall to 200, regulators say
Due to continued pension consolidations, the number of Netherlands-based pension funds has fallen to almost 200, according to statistics from De Nederlandsche Bank (CNB). The watchdog still has 230 schemes under supervision; however, 29 of them are in the process of liquidation. Three years ago, the total number of pension funds in the country stood at 304.
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Debenhams lenders reject Sports Direct rescue plan
Sports Direct’s recapitalization plan for Debenhams was rejected by the group’s lenders on Monday, making it increasingly more likely that the struggling department store will be placed into a pre-pack administration. Under a pre-pack administration, Debenhams’ operating subsidiaries would be transferred to a new vehicle, leaving the listed holding company as an insolvent shell and wiping out its shareholders.
Ex-Ontario Teachers’, ATP CIO set to launch new firm’s first product
Bjarne Graven Larsen, the former CIO of Canada’s Ontario Teachers’ Pension Plan and Denmark’s ATP, is set to launch his first investment fund at his new venture. Larsen’s Qblue Capital will manage a multi-strategy risk premia fund called Qblue Luxembourg. Larsen co-founded Qblue with Fredrik Martinsson, another previous ATP CIO.
Source: Chief Investment Officer
Brexit drives £62bn offshore as UK hedge fund investors flee to Dublin and Luxembourg, says Calastone
According to the latest figures from global funds transaction network Calastone’s Fund Flow Index (FFI), UK hedge fund investors have moved a net £62bn in fund investments outside the UK since the EU referendum in June 2016. In the 18 months preceding the referendum, only £2.5bn was allocated to offshore funds by UK hedge fund investors.
For more data and analysis on fund managers’ future plans, take a look at the 2019 Preqin Global Hedge Fund Report.
Norway is walking away from billions of barrels of oil
The opposing Labour Party in Norway, Western Europe’s largest petroleum producer, decided to withdraw its support for oil exploration offshore in the Lofoten islands in Norway’s Arctic. This created a solid majority in parliament to keep the area off limits for drilling. Oil and gas currently account for more than half of Norway’s exports; the decision could signal the end of an era that made it one of the world’s most affluent nations.
Private equity managers hit the road in quest for $1tn
Private equity fundraising in 2019 has begun at a record pace with 3,749 funds on the road in January, up 63% from January 2018. The figures would suggest that private equity managers are looking to raise close to $1tn in new capital this year, creating a competitive environment for any fund looking to raise fresh capital. Close to a fifth of funds that closed in 2018 failed to reach their fundraising target; given the competitive fundraising landscape so far this year, this figure could be substantially higher for 2019.
For all the latest fundraising figures for Q1 2019, take a look at the recently released Preqin Quarterly Update: Private Equity & Venture Capital, Q1 2019.