KKR and Altavair L.P. announced that KKR is making an additional $1.15 billion commitment to expand its global portfolio of leased commercial aircraft in partnership with Altavair.
The investment will come from KKR’s credit and infrastructure funds.
KKR has deployed and committed $1.7 billion of capital into aircraft deals since forming a partnership with Altavair and acquiring an interest in the company in 2018.
KKR, in partnership with Altavair, has acquired more than 90 commercial and freighter aircraft through a variety of transactions, including lessor trades, airline direct used and new delivery sale leasebacks, structured transactions and passenger-to-freight conversions and has successfully leased more than 75% of the portfolio to tier-one airlines and operators around the world.
“We are thrilled to deepen our footprint in aircraft leasing through this new commitment, which underscores the conviction that we have in this space and our confidence in Altavair as a partner,” said Dan Pietrzak, KKR Partner and Co-Head of Private Credit. “We look forward to growing our portfolio further to support the fleet needs of airlines and operators around the world.”
“Airlines are increasingly seeking greater liquidity and fleet flexibility, which is creating significant opportunities for high quality leasing teams with deep access to private capital,” said Brandon Freiman, KKR Partner and Head of North American Infrastructure. “We are proud to serve this growing need in partnership with Altavair.”
“Aircraft leasing continues to be a dynamic and growing market that offers compelling and differentiated opportunities for experienced investors,” said Steve Rimmer, CEO of Altavair. “The portfolio that we’ve created over the past several years further evidences the power of combining KKR’s quality capital and capabilities with Altavair’s deep technical and aircraft investing expertise and innovation. We greatly appreciate KKR’s ongoing trust in our platform and look forward to building further on this success in the years to come.”
KKR has invested approximately $8.3 billion of capital in the aviation sector since 2015. Investments include Altavair, AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, Wheels Up, Global Jet Capital and Jet Edge, among others.
AXA Investment Managers (AXA IM) announces the launch of the AXA WF ACT Plastic & Waste Transition Equity QI fund which supports, on the long-term, the United Nations Sustainable Development Goals (UN SDGs), in particular the SDG 12, Responsible consumption and production, by investing in companies that are limiting or managing in a sustainable way their plastic use or have efficient waste management practices.
Managed by the AXA IM Equity QI team, responsible for AXA IM’s quantitative equity capabilities, the fund invests in companies that are UN SDG 12 aligned, for example through the actions they are taking in their operations, such as production processes, recycling rates and supply chain management, to limit or manage in a sustainable way their plastic and waste footprint or because the company provides products that directly support responsible consumption and production.
The fund invests in large, mid and small cap companies across developed and emerging markets. The selection and weightings of the stocks is based on a proprietary quantitative process that incorporates both financial and non-financial data with the objective of identifying fundamental drivers of risk and return whilst structuring the portfolio in a way that meets the fund’s SDG objectives. As an example, the management team uses Natural Language Processing (NLP) to increase exposure to companies that are actively articulating a plastic or waste approach in their earnings calls.
The fund forms part of AXA IM’s ACT range. It harnesses both external and internal data (including AXA IM qualitative SDG insights) to measure positive contributions of the companies to the UN SDG 12.
Commenting on the launch of the fund, Jonathan White, Head of Investment Strategy & Sustainability in AXA IM Equity QI team, said:“Companies that are reducing waste and supporting a more sustainable approach to their use of plastic play a key role in the effort to mitigate climate change and stem biodiversity loss.
We expect the next few years to be pivotal in plastics pollution mitigation driven by both government regulation and changing end-consumer preference. These structural trends are likely to drive significant growth in segments of the markets such as sustainable packaging and plastic recyclying.
As such its our view that companies that are facilitators or leaders in waste management and plastic-use are not only sustainable investments but could also be an attractive long term investment opportunity.”
The fund is or will be registered and available to professional and retail investors in Austria, Belgium, Denmark, France, Germany, Italy (institutional only), the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Snowden Lane Partners and Estancia Capital Partners (“Estancia”), announced that Snowden Lane secured a new $100 million credit facility.
The new facility replaces a facility originally secured with ORIX Corporation in 2018 and subsequently expanded in early 2022. The $100 million of available credit will enable Snowden Lane to significantly bolster its recruiting momentum and position itself for sustained growth through 2023 and beyond.
In 2021, Snowden Lane recruited $2.4 billion in client assets and 13 advisors, and in 2022 the firm recruited over $1.5 billion in client assets and 10 advisors, making it one of the fastest-growing firms in the independent RIA space. Snowden Lane currently services ~$9 billion in client assets.
“We’re excited to kick off the new year with this announcement, as this additional, non-dilutive capital will allow us to execute our vision for the firm’s next stage of growth,” said Rob Mooney, Managing Partner & CEO of Snowden Lane Partners. “We are extremely grateful for Estancia’s support. Estancia continues as a committed partner since the early days of our business and played a crucial role helping Snowden Lane realize its potential. We look forward to continuing our shared success in the coming year.”
Takashi Moriuchi, Managing Director and Co-Founder of Estancia added: “Estancia’s most important investment criteria is always partnering with companies who have experienced management teams capable of executing on their growth strategy and maximizing value. Snowden Lane and its executive team is a prime example of why this is so important. Under the management team’s leadership, the firm rapidly become a key player in the independent wealth management space and is an attractive destination for advisors seeking a full-service alternative to the wirehouses. As Snowden Lane’s partner, we believe this financing provides even more support for management to continue attracting amazing financial advisors leading to even greater growth.”
Since its founding in 2011, Snowden Lane has built a national brand, attracting top industry talent from Morgan Stanley, Merrill Lynch, UBS, JP Morgan, Raymond James, Wells Fargo, and Fieldpoint Private, among others, the firm said.
Similarly, Estancia raised $420 million in committed capital and nearly $150 million in co-investment capital across two funds, completed 14 platform investments and 18 add-on investments over the last decade.
Snowden Lane employs 132 total professionals, 72 of whom are financial advisors, across 12 offices around the country: Pasadena and San Diego, CA; New Haven, CT; Coral Gables, FL; Chicago, IL; Pittsburgh, PA; Baltimore, Salisbury and Bethesda, MD; San Antonio, TX; Buffalo, NY, as well as its New York City headquarters.
In connection with the new facility, Apogem Capital served as joint lead arranger, joint bookrunner, and administrative agent. Monroe Capital also served as joint lead arranger and joint bookrunner.
Franklin Templeton has announced that effective March 31, 2023, Manraj Sekhon will assume the role of CIO of Templeton Global Equity (TGEI), leading both Templeton Global Equity Group (TGEG) and Franklin Templeton Emerging Markets Equity (FT EME), following the departure of Alan Bartlett, CIO of TGEG, who will be leaving the firm to move on to the next phase of his career.
As announced in early 2022, Manraj Sekhon was named head of Templeton Global Equity Investments (TGEI), which combined the businesses of Franklin Templeton Emerging Markets Equity (FT EME) and Templeton Global Equity Group (TGEG) under a single umbrella, while retaining the integrity of their respective investment philosophies and processes and continuing to share best practices.
“Sekhon is a seasoned investor and investment executive, who has been leading FT EME for the past five years, since joining as its CIO in 2018. He has more than 25 years of experience researching and investing in global and international markets and managing investment teams and processes,” the firm said.
In his expanded role, Sekhon will have CIO responsibilities for both groups and will be supported by the respective Management Committees of FT EME and TGEG, which have representation from senior investment and business leaders, who manage day-to-day investment and business development activities and work jointly to set the strategic direction of the two teams.
“We expect this change to be seamless for our clients, as day-to-day investment decision making for both teams remains unchanged. Bartlett is not a named portfolio manager for any TGEG strategies or portfolios,” the press release added.
Franklin Templeton Emerging Markets Equity consists of over 70 investment professionals across 13 offices globally, and manages USD 30 billion in global, regional, single-country, small cap, frontier and specialty strategies as of November 30, 2022.
Templeton Global Equity Group consists of 38 portfolio managers and analysts located across seven offices globally, and manages USD 36 billion in Opportunities, Select, Sustainability, Balanced, Leaders, Asia Pacific, Europe, and Small Cap strategies as of November 30, 2022.
BlackRock plans to dismiss about 500 employees, about 2.5% of its global workforce.
“The uncertainty around us makes it more important than ever that we stay ahead of changes in the market and focus on delivering for our clients,” CEO Larry Fink and Chairman Rob Kapito wrote Wednesday in a note to employees accessed by Bloomberg.
One of the world’s biggest asset managers faced steep declines in equity and fixed-income markets last year.
It is the first round of job cuts at BlackRock since 2019, and will still leave the workforce about 5% higher than a year ago, Bloomberg claims.
The firm, which will report its fourth-quarter results this Friday, had about 19,900 employees at the end of September.
Rising inflation and rising interest rates have rattled asset managers and markets, with the S&P 500 index plunging 19% in the past year.
The firm, with $7.96 trillion in assets under management at the end of the third quarter, did not specify which businesses will be most affected by the job cuts.
The company’s two leaders said in the note that they would work to “manage expenses prudently” and invest profitably.
The executives sought to emphasize the firm’s ability to take in new client money. Flows into its long-term investment funds increased by $250 billion through the first nine months of last year, and analysts surveyed by Bloomberg predict they brought in an additional $116 billion in the fourth quarter.
“Our breadth and resilience,” Fink and Kapito wrote, “allow us to play offense when others pull back.”
BNP Paribas announced its plans to open a new office in the metro-Miami area.
The Miami office will support the continued growth of its Global Markets business in the US, amongst others, and the increasing number of clients with a foothold in South Florida. The hub will provide an additional gateway to its regional clients, as well as expand on its network of US campuses.
The new office will be located at 801 Brickell Avenue in Miami’s financial hub, officially open for business in the 4th Quarter 2023, and employ nearly 50 full-time professionals in credit, equities, and macro products. A seven and a half year lease for the office was recently signed.
José Placido, Chief Executive Officer of CIB Americas at BNP Paribas, said: “Our new office is another recent example of scaling our business in ways that fully support our client’s ambitions, as more of our clients build a presence in South Florida. With this opportunity to better serve our clients, we deliver on our ambitions to grow our corporate and institutional banking franchise in the Americas. Our new Miami office also continues with our ‘workplace of the future’ model, focusing on wellbeing and employee experience.”
John Gallo, Head of Global Markets Americas at BNP Paribas, said: “We’re very excited to be in the growing business environment of South Florida. This office will allow us to be closer and better serve our clients, many of whom have also migrated to the area, particularly Miami and Palm Beach.”
BNP Paribas has recently made several large real estate actions in the US including opening a new office in the Philadelphia area in October 2021. The bank has also made significant facilities and work space commitments in its two metro New York City offices in Midtown West Manhattan and Jersey City, NJ. BNP Paribas signed 20 year leases for all three properties in the greater NYC and Philadelphia areas in July 2020. The group also has offices in the following major cities* (Boston, Chicago, Dallas, Denver, San Francisco and Washington, DC).
BNP Paribas’ Miami campus will be the latest example of the bank’s efforts to create best-in-class platforms and products for its local Miami-area clients, the report says. As BNP Paribas continues to pursue and execute on its growth ambitions in the region, the Miami office will integrate seamlessly with its other offices.
Insigneo announced the hiring of Mauricio Viaud as Senior Investment Strategist & Portfolio Manager. He will report to Ahmed Riesgo, Chief Investment Officer.
Prior to joining the firm, Viaud worked as a Senior Equity Research Analyst at Janney, Montgomery, Scott, where he provided equity research insight and analysis for global stock portfolios. Before this, he was a buy-side equity research analyst at Bank of New York Mellon, where he provided equity research coverage for the energy and materials sectors for three large institutional mutual funds.
“Incorporating Mauricio within our CIO office will better position us to meet the growing demand from our network for high-quality research and asset allocation guidance,” said Javier Rivero, President and Chief Operating Officer of Insigneo. “This strategic hire further evidences our commitment to invest in our firm and expand our team, which is particularly exciting in light of our company’s international leadership positioning as well as the current market conditions.”
Viaud has over 22 years of experience in capital markets and the financial services industry, including experience in equity research, portfolio management, and formulating and communicating firm-wide investment strategies.
He also has significant experience providing equity research for institutional mutual funds, writing equity research reports, formulating investment strategy as a member of various strategy committees, and executing portfolio management responsibilities.
“We are pleased to add a professional of Mauricio’s caliber to our growing team, as part of our commitment to align ourselves with the industry’s best and brightest talent and continue to expand our asset management, research, and data analytics capabilities,” Riesgo said. “Mauricio’s outstanding track record of execution, his impressive market insights and strategic thinking make him an ideal fit for this important leadership role at Insigneo, where he will have a pivotal role in helping chart the path for our next chapter of success.”
Specifically, Viaud will join the CIO Office in a dual role as a Senior Investment Strategist and Portfolio Manager. He will become an integral part of the firm’s research team and investment committee, as well as the service offering of the team. On the research side, he will issue equity research reports for major Latin American companies, provide investment recommendations and opinions, and participate in high-level client meetings. In addition, he will publish a weekly newsletter for clients. On the portfolio management side, he will manage a Latin American Equity SMA focused on providing alpha in the space for equity investors in the region.
“I am thrilled to join Insigneo and consider it a natural next step in my career,” Viaud said. “Insigneo’s powerful platform, market leadership and dynamic growth opportunities will enable me to apply my knowledge, skills and talents in a rewarding, collaborative team environment.”
Viaud’s diverse financial-services experience spans high-net-worth client relationship management, equity analysis, portfolio management and equity strategy. He has provided analyst coverage for a wide range of global stocks and helped manage equity portfolios and formulate investment strategies. He has appeared on a variety of radio and printed media publications, including Financial Times.
Viaud has a bachelor’s degree in finance and international business from the University of Richmond, as well as an Executive MBA focused on asset and wealth management from Carnegie Mellon’s Tepper School of Business and HEC Lausanne in Switzerland. He is currently working on attaining the CFA charter, having completed the Level II examination.
Byron R. Wien, Vice Chairman together with Joe Zidle, Chief Investment Strategist in the Private Wealth Solutions group at Blackstone, issued their list of the Ten Surprises of 2023.
This is the 38th year Byron has given his views on a number of economic, financial market and political surprises for the coming year.
Byron defines a “surprise” as an event that the average investor would only assign a one out of three chance of taking place but which Byron believes is “probable,” having a better than 50% likelihood of happening.
Byron started the tradition in 1986 when he was the Chief U.S. Investment Strategist at Morgan Stanley. Byron joined Blackstone in September 2009 as a senior advisor to both the firm and its clients in analyzing economic, political, market and social trends. In 2018, Joe Zidle joined Byron Wien in the development of the Ten Surprises.
Byron and Joe’s Ten Surprises of 2023 are as follows:
Multiple candidates on both sides of the aisle organize campaigns to secure their party’s presidential nomination. There are new headliner names on the respective tickets for 2024.
The Federal Reserve remains in a tug-of-war with inflation, so it puts the word “pivot” on the shelf alongside the word “transitory.” The fed funds rate moves above the Personal Consumption Expenditures price index and real interest rates turn positive, a rare phenomenon relative to the last decade.
While the Fed is successful in dampening inflation, it over-stays its time in restrictive territory. Margins are squeezed in a mild recession.
Despite Fed tightening, the market reaches a bottom by mid-year and begins a recovery comparable to 2009.
Every significant correction in the market has in the past been accompanied by a financial “accident.” Cryptocurrencies had a major correction and that proved not to be a systemic event. This time, Modern Monetary Theory is fully discredited because deficits have proven to be inflationary.
The Fed remains more hawkish than other central banks, and the US dollar stays strong against major currency pairs, including the yen and euro. This creates a generational opportunity for dollar-based investors to invest in Japanese and European assets.
China edges toward its growth objective of 5.5% and works aggressively to re-establish strong trade relationships with the West, with positive implications for real assets and commodities.
The US becomes not only the largest producer of oil, but also the friendliest supplier. The price of oil drops primarily as a result of a global recession, but also because of increased hydraulic fracking and greater production from the Middle East and Venezuela. The price of West Texas Intermediate crude touches $50 this year, but there’s a $100 tick out there sometime beyond 2023 as the world recovers.
The bombardment, destruction and casualties in Ukraine continue for the first half of 2023. In the second half, the combination of suffering and cost on both sides necessitates a ceasefire and negotiations on a territorial split begin.
In spite of the reluctance of advertisers to continue to support the site and the skepticism of creditors about the quality of the firm’s debt, Elon Musk gets Twitter back on the path to recovery by the end of the year.
The “Also Rans” of 2023
Every year there are always a few Surprises that do not make the Ten, because we either do not think they are as relevant as those on the basic list or we are not comfortable with the idea that they are “probable.”
Because of medical breakthroughs across the board, many people decide on a cryogenic burial, expecting to be defrosted when a cure for the disease that caused their demise is discovered. Funeral homes across the country advertise that “It’s Nice to Be On Ice.”
A technology breakthrough in reducing the carbon emissions of coal-fired plants takes the edge off the climate / global warming scare. This lowers the political pressure on emerging markets to make a rapid transition to renewable energy sources.
India begins to compete seriously to win/retain the manufacturing base that started looking for a new home after becoming increasingly uneasy with the uncertainty that has continuously surrounded US–China policies. The country initiates a campaign to attract global multinationals, focusing on its young population, relatively low income and growing consumer market, and prioritizing policies that incentivize investment in the auto, energy, pharma and tech sectors. Apple and Samsung are a proof of concept after successfully producing their respective flagship phones for global markets.
iCapital announced the appointment of Agnes Bundy Scanlan to the company’s board of directors, effective January 1, 2023.
Bundy Scanlan brings a wealth of experience from her 30-year career in regulatory risk management and compliance.
Since May 2020, she has served as president of The Cambridge Group, a regulatory risk management firm that advises financial services and fintech firms. A former chief regulatory and compliance officer and global chief privacy officer at TD Bank,
She also serves on the boards of AppFolio, R1 RCM, and Truist Financial. In 2021, she was recognized as one of Savoy’s Most Influential Black Corporate Directors.
“Having an active and engaged board of directors with a variety of backgrounds and experiences is vital to the success of iCapital. I’m delighted to welcome Agnes to our board,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital. “We look forward to working with her and benefiting from her wisdom and experience.”
Before joining The Cambridge Group, Ms. Bundy Scanlan worked as a senior advisor for consulting firm Treliant and northeast regional director at the Consumer Financial Protection Bureau. She also has held various executive roles at Bank of America and FleetBoston Financial. Earlier in her career, she was counsel at the U.S. Senate Banking Committee.
“I’m excited to join iCapital’s board of directors,” said Bundy Scanlan. “iCapital is a leader in making alternative investments more accessible to advisors and investors. I look forward to working with Lawrence and iCapital to continue to deliver on this mission.”
Heading into 2023, it’s time to take stock of your budget, debt and investments—and check them against your financial goals. These six steps can get you started
The start of a new year offers an opportunity to reflect on the past and set goals for the future. Revisiting both your personal and financial goals can help set you up for success in 2023 and beyond.
Here are six ways to kick off the new year with fresh a perspective:
1. Revisit Your Household Budget
Start the year by revisiting your budget. Assess your average monthly income, as well as your fixed and variable expenses, and determine your financial priorities for 2023 to develop the ideal budget for you. Reassessing your budget may be especially valuable now, as high inflation forces many households to allocate more for essentials like groceries or gas.
2. Check Your Emergency Fund
It’s always a good idea to double-check that you have adequate funds set aside for a rainy day—but that’s especially true in times when the economy may be slowing from its once robust pace. Morgan Stanley’s economics team forecasts year-over-year U.S. GDP growth to remain flat in the fourth quarter of 2022 and to increase just 0.5% in 2023,1 down sharply from 5.7% in 2021.
Not only can an emergency fund help you to avoid liquidating portfolio assets at potentially depressed prices during periods of market volatility, it can also help keep you financially afloat in unforeseen life circumstances, such as a change in your or a loved one’s employment situation. A general rule-of-thumb for an emergency fund is saving three to six months’ worth of living expenses in a safe, liquid account.
3. Tackle Your Debt
Even if you’re already good about managing debt, consider taking steps to help reduce and consolidate it further. For example, if you’re expecting a raise or year-end bonus, consider applying the extra income to any balances with high interest rates.
Then, think about consolidating any remaining debt, which may help you swap a varying interest rates on multiple loans, credit lines or cards, for a potentially lower rate on a single loan. Reducing the number of loans you carry can also help simplify your financial life and ease money stress. You may want to ask your Financial Advisor about possible strategies.
4. Prioritize Your Wellness
The pandemic may no longer be weighing as heavily on some people’s minds as it once did: According to Morgan Stanley’s 2022 Investor Pulse Poll, a lower percentage of survey respondents (37%) reported that their emotional health had suffered due to the pandemic in 2022, down from 43% in 2021.
The new year can be an opportunity to continue prioritizing your personal and financial wellness. Consider taking advantage of any employer wellness resources for physical, mental or financial health. Many companies offer financial-education programs and digital learning tools, which can supplement the advice you receive from a Financial Advisor. Using these tools can help you not only bring a sharper version of yourself to the job, but also set you up to make better use of other workplace benefits, such as a retirement plan, equity compensation or group insurance, if available.
5. Make Sure You’re on Track With Your Goals
Be sure to check whether you’re still tracking toward your goals, such as saving and investing for a comfortable retirement. If the recent bear market or other factors have temporarily thrown you off course, work with your Financial Advisor to figure out how you can get back on the right path.
Or, if you’re still on track with your goals, talk with your Financial Advisor about new goals you want to work toward. For example, in 2022, were you able to boost your contributions to a workplace retirement plan or individual retirement account? In 2023, can you contribute even more to these or other accounts?
6. Consider Investing in Ways that Matter to You
Morgan Stanley’s 2022 Investor Pulse Poll also reported that 71% of all respondents say it’s important that their portfolio aligns with their values, beliefs and issues that matter to them—yet only 44% believe it’s currently happening. Not only that, 66% of all respondents express a desire for companies they invest in to have policies in place to promote diversity, equity and inclusion.
