Photo: José Luis Cernadas Iglesias. Riccardo Dallolio Joins H.I.G. Capital as Co-Head of European Real Estate
H.I.G. Capital, a global private equity investment firm with more than €13 billion of capital under management, is pleased to announce the appointment of Riccardo Dallolio as Managing Director and Co-Head of European Real Estate. Based in London, he will share these leadership responsibilities with Ahmed Hamdani, who has been a Managing Director in London since 2012.
With over 16 years in the real estate industry, Riccardo has extensive investment and transactional experience across a number of jurisdictions in Europe. Prior to H.I.G., he was at AXA RE where he was Head of Alternatives and Special Situations. During his time at AXA RE, he also held the positions of Head of Transactions in Europe and Head of Asset Management and Transactions in France. Prior to AXA, Riccardo was a Partner at Grove International Partners, and worked in the J.P. Morgan Real Estate Group in London.
H.I.G. Capital’s real estate platform targets opportunistic real estate investments, with a focus on adding value, improving performance, and achieving attractive risk adjusted returns. With offices in London, Madrid, and Milan, the H.I.G. European real estate team is active across a wide spectrum of real estate asset classes. It has completed 13 transactions across multiple jurisdictions in Europe in the last two years including the U.K., Spain, Italy, the Netherlands, and Finland. With the ability to invest in all parts of the capital structure, H.I.G. Capital is able to develop creative financing solutions and consummate transactions on an expedited basis. Typical investment size ranges from €10 million to €100 million.
In commenting on the appointment, Sami Mnaymneh, Co-Founder and Co-CEO of H.I.G., noted, “I am delighted to welcome Riccardo to the firm. He is a very experienced and successful real estate investor who significantly augments the expertise and capabilities of our team. I am confident he will play an instrumental role in H.I.G. Capital’s development and growth in the real estate asset class.”
BNY Mellon announced that it has signed an agreement with Deutsche Asset & Wealth Management to provide real estate and infrastructure fund administration services, representing roughly $46.3 billion in assets under administration.
Last July, BNY Mellon and Deutsche AWM announced that they had entered into exclusive negotiations to complete an agreement. Terms of the deal, which closed effective February 1, were not disclosed.
Under the agreement, Deutsche AWM will outsource its direct real estate and infrastructure fund finance,fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon. Up to 80 members of Deutsche AWM’s fund finance team are expected to transfer to BNY Mellon and become part of its Alternative Investment Services business.
“As investors shift into other alternative investments, the market for real estate asset servicing is poised for solid growth,” said Samir Pandiri, executive vice president and CEO of Asset Servicing at BNY Mellon. “Investment managers are turning to asset servicers like us who are better positioned to make the necessary investments in technology and people to deliver a higher level of service.
“This important new relationship will allow us to develop a more integrated accounting and client reporting solution that leverages Deutsche Asset & Wealth Management’s global presence and team, and help propel the growth of our real estate fund administration business,” Pandiri added.
“We have developed a close partnership with BNY Mellon and look forward to working with them on this innovative initiative,” said Pierre Cherki, head of Alternatives and Real Assets for Deutsche AWM. “Our goal is to provide clients the best service possible in this area and this strategic relationship will enable us to benefit from the resources of one of the world’s leading investment servicing companies.”
Foto: AndresNieto, Flickr, Creative Commons. El milagro del consumo emergente menos claro que hace un año por culpa del crudo y las divisas
India tops the Credit Suisse Emerging Consumer Scorecard 2015, moving up from fourth in last year’s scorecard. India was rewarded for its consistent performance; being the only country to score in the top three for each of the key metrics mentioned above. China falls from first in last year’s Scorecard to fifth this time round and while it tends to dominate the debate surrounding EM, Credit Suisse analysts would note that, although the gloss may have come off this story, it remains far from the greatest source of consumer vulnerability in emerging markets. That lies in Russia and South Africa according to The Credit Suisse Emerging Consumer Survey.
The report analyses which of these economies and consumers are most exposed to the current commodity and currency volatility. India, Turkey and China are less directly exposed versus Russia, Latin America and South Africa.
The Credit Suisse Research Institute has published its fifth annual Emerging Consumer Survey – a detailed study profiling consumer sentiment and its drivers across the emerging world. The study provides a timely insight regarding consumer sentiment and future consumption patterns at a time when emerging economies are under a spotlight of concern with growth rates slowing and the prevailing commodity price and foreign exchange volatility posing new challenges.
1. e-Commerce and the emerging consumer
This year’s survey provides very positive support for the outlook of e-Commerce across the countries surveyed, with feedback from this year’s study indicating that e-Commerce across the nine countries could become bigger as a share of total retail sales than in developed economies.
Some of the reasons for this are: the relatively underdeveloped “bricks and mortar” retail sector, especially in more rural areas, the rapid increase in the share of consumers with smartphone-related inter net access creating new verticals of spending and the underlying driver of expanding disposable income. Today’s survey estimates that this could lift total annual online retail sales across our surveyed markets to as much as $3trn, which would impact companies across multiple sectors including retail, finance, security and technology.
Of particular note is the growth in online behavior amongst Indian consumers. For example, the share of respondents in India that have used the internet for online shopping increased to 32% from 20% in 2013, while the share that is likely to use the internet for online shopping in the future is now higher than that of China. Sizeable potential also lies in Latin America.
2. Travel & leisure and the emerging consumer
The desire to increase future spending on holidays and travel has been a consistent theme of all our previous surveys, and this continues into 2015. The propensity to travel has risen again in this survey with consumers holidaying rising from 45% to 65% during the life of our surveys with multiple holidays now a feature.The short- term trends manifest themselves differently by country. For example, the desire to travel more has accelerated most meaningfully in Mexico and India but has slowed in China, Turkey and South Africa.
The interaction with technology is a related theme and visible in the survey. Global travel distribution channels are evolving rapidly, with more emphasis on web-based bookings via both direct (company owned) and indirect channels (third party online travel agents). The associated changes in consumers’ chosen booking channel are having profound effects upon the industry value chain, especially for hotels, where margins are coming under pressure, though presenting great potential for the on-line platforms themselves
3. Autos and the emerging consumer
Mobility is another key trend for economies where GDP per capita is rising. The largest car market in the world, China, has continued its strong positive trend in car ownership, growing at a compound annual growth rate (CAGR) of 13% since our 2010 survey, the strongest growth in our survey. Turkey is also moving up the curve rapidly with a CAGR of 6%. Ownership rates have remained broadly stable in other regions. India and Indonesia have the lowest household car ownership rates, at 19% and 7% respectively, and in that respect are a source of great potential.
However, it important to note that the development of the car market in the emerging world, and particularly in China, cannot be looked at in isolation from regulatory developments in areas of pollution control, energy efficiency and also, if to a lesser extent, safety requirements. Where emissions are concerned in China, 2020targets for CO2, for example, require a 32% reduction from the 2013 actual level (versus 25% in Europe). This underlines the significance of technological developments in the auto component field addressing these needs.
4. Healthcare and the emerging consumer
Healthcare in emerging markets is seen as a structural growth opportunity by both companies and investors alike. Indeed the relationships between healthcare spending and rising GDP per capita are well established. The reality is that the picture is far more complicated than the simple relationships would suggest, particularly when translated into the revenue projections for companies. The nature of healthcare provision (public versus private), local versus global brand positioning and who is ultimately paying the bills are key considerations. Our survey provides a perspective on each of these issues and comes to a cautious view as to how the structural story translates to the corporate bottom line.
Access to healthcare growing -There is growing government involvement in most countries, with reported access to free medicines increasing from 26% of the emerging market population in 2011 to 48% in 2014.
Out-of-pocket spending remains stable – As a share of overall spending by consumers, out-of- pocket spending on healthcare has remained broadly flat at around 5% of income, but income that is of course growing.
Trust in local brands, safety concerns abating – We have seen an increase in overall trust for local brands (57% to 59% on a population-weighted basis, with increased confidence in India and China. The correlation between a lack of confidence in local brands and a willingness to pay for international brands continues to be a key feature.
The age/income conundrum – Both income and spending on pharmaceuticals increase with age in developed markets. The purchasing power and needs are aligned. Our survey continues to suggest that this is not the case in emerging markets in a world where disposable income continues to be more concentrated in the hands of the young. The need for healthcare and the location of purchasing power are not well aligned.
5. Brands and the emerging consumer
The report updates its unique brand analysis and draws out several key themes. The battle between domestic and global brands is a key focus, highlighting which products and preferences are skewed domestically.
The relevance of technology and e-commerce is a new feature to this debate and highlights the significance of domestic rather than global e-commerce brands and platforms and the challenges it poses to the global software companies and networks. In the hardware space, the analysis underpins the brand momentum of Apple, though Samsung displays the widest penetration and growing recognition across the emerging world. It is a standout brand across the widest range of categories.
Away from technology, a key theme from the survey is the accelerating penetration of the more typical “high street” brands such as H&M and Zara, at a time when luxury brands have been losing some of their gloss.
Photo: Mattbuck. Ficohsa Established as the Largest Bank in Honduras
After several consecutive years of growth, and following the acquisition of the consumer banking business of Banco Citibank Honduras and Cititarjetas de Honduras, Banco Ficohsa has established itself as the largest in Honduras, and among the 10 most important banks the Central American region. This is confirmed by official figures released by the National Banking and Insurance Commission (CNBS) in December 2014.
The financial institution has grown in several key banking indicators including assets, loans, and net worth, currently occupying the leading position in the country since the end of 2014.
“The results of the CNBS report confirm our position as the leading bank in Honduras,” said Camilo Atala, executive president of Grupo Financiero Ficohsa. “We believe in the region and will continue to explore growth opportunities that will allow us to reinforce our leadership position not only in Honduras, but in all of Central America.”
Ficohsa’s net assets grew 37.9% from December 2013 (USD $2,182 million) to December 2014 (USD $3,011 million), gaining 19.4 % of market share in Honduras. Ficohsa is followed by Banco Atlántida with 18.2% of market share (USD $2,821 million) and Banco Occidente with 13.7% market share (USD $ 2,123). The three Honduran banking institutions combined occupy more than 50% of market share in terms of net assets.
Additionally, Ficohsa occupies the leading position in terms of its loan portfolio, which grew 19.2%, from December 2013 (USD $1,596 million) to December 2014 (USD $1,902 million), granting Ficohsa 18.9% of market share in this area. Banco Atlántida’s loan portfolio reaches USD $1,751 million, followed by BAC with USD $1,348 million.
Ficohsa also leads in home loans, offering 18.3% of home loans in the Honduran market, totaling USD $299 million. It is followed by Banpaís with a current offering of USD $260 million and Davivienda with USD $211 million.
Banco Ficohsa’s net worth represents 21.1% of the entire Honduran financial market, followed by Banco Atlántida with 15.6% of market share and Banco Occidente with 13.6%.
Wikimedia CommonsFoto: JohnArmagh. Eaton Vance incorpora a un nuevo gestor y analista global de high yield
Eaton Vance Management International (EVMI) announced the appointment of Jeffrey D. Mueller as Vice President, Portfolio Manager and Global High Yield Analyst.
Based in London, Mr. Mueller will be responsible for spearheading continued growth in Eaton Vance’s global corporate credit capabilities. He will lead investment management and credit research for all non-U.S. high yield opportunities.
Mr. Mueller will join Eaton Vance in March 2015 from Threadneedle Asset Management, where he has been a High Yield Portfolio Manager and Investment Analyst since 2009. He managed European high yield credit portfolios, with focused research coverage of the automobile, industrials and services sectors. Mr. Mueller previously spent six years working as a European sub-investment-grade Research Analyst and Trader for Centaurus Capital and Amaranth Advisors, both in London. Mr. Mueller graduated from University of Wisconsin School of Business with a bachelor of business administration degree.
“Jeff’s skills and experience will enable us to further develop the scope and scale of our London-based global corporate credit capabilities,” said Michael W. Weilheimer, CFA, Eaton Vance’s Director of high yield, based in Boston. “Our team’s research analysts have long maintained significant coverage of non-U.S. credits. Jeff’s addition to the team allows us to leverage existing investment capabilities while enhancing the depth of our research and the reach of our global presence. We plan to hire additional global credit analysts later this year who will report to Jeff.”
Eaton Vance Corp., is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $296.0 billion (USD) in assets as of 31 December 2014, offering individuals and institutions a broad array of investment strategies and wealth management solutions. EVMI, based in London since 2001, is a subsidiary of Eaton Vance Management, and provides investment services to financial institutions, banks, and asset management firms globally.
Foto: juan Antonio Capo, Flickr, Creative Commons. Dos de cada 3 nuevos fondos nunca llegan a alcanzar los 100 millones de euros
New research highlights the generally low success rate of fund groups in their product launches. Analysis by specialist research house, MackayWilliams, reveals that just 3% of funds launched between 2006 and 2011 reached more than €1bn of assets under management by 2014 (1) and less than 30% ever achieve assets of more than €100m.
“Most groups set the success bar for new products much higher, at around €500m, and with this target they have less than a one in 10 chance of hitting the mark” says Diana Mackay, CEO of MackayWilliams.
In the heavily regulated arena of asset management, the success of new funds has become a critical measure of a group’s asset building achievement. In the course of a year fund groups will launch 2,000 funds, on average, and yet the overwhelming majority will fail to gather meaningful assets. With a product choice of around 35,000 in Europe, why do investors need more?
“New funds are the revenue generators of the future and, like it or not, they are responsible for significant net sales inflow, regardless of whether they are launched by a group with captive clients or are reliant on third party distribution”, explains Diana Mackay. “Of the €2.5trn of asset growth that has occurred over the last five years, nearly half (€1.1trn) has come from funds that were launched during the period. Innovation has always been the lifeblood of the fund management business but with regulatory pressures growing it is taking longer and getting harder to introduce new ideas. Nowadays, product developers and strategists must make every fund work for its space on distributors’ shelves and this means culling the dead wood as well as launching funds that really have appeal with changing investor appetite.”
Increasingly success will be linked to independent evaluation of feedback from fund selectors about where the product gaps exist. An extensive interview process conducted by Fund Buyer Focus provides the voice of clients, and represents a vital additional source of information for product developers. The latest product innovation report highlights rising interest amongst distributors for ESG products, some niche appetite for frontier funds and other thematics, as well as more ‘solutions’.
CC-BY-SA-2.0, FlickrPhoto: David Dennis. MSCI Delays Inclusion of China A-Shares in Index
After nearly one year firmly positioned at #7, the Renminbi has entered the top five of world payment currencies since November 2014, overtaking both the Canadian Dollar and the Australian Dollar by value. Just two years ago, in January 2013, the RMB was ranked at position #13 with a share of 0.63%. In December 2014, the RMB reached a record high share of 2.17% in global payments by value and now trails the Japanese Yen which has a share of 2.69%.
“The RMB breaking into the top five world payments currencies is an important milestone” says Wim Raymaekers, Head of Banking Markets at SWIFT. “It is a great testimony to the internationalisation of the RMB and confirms its transition from an “emerging” to a “business as usual” payment currency. The rise of various offshore RMB clearing centres around the world, including eight new agreements signed with the People’s Bank of China in 2014, was an important driver fuelling this growth”.
Overall, global RMB payments increased in value by 20.3% in December 2014, while the growth for payments across all currencies was 14.9%. The RMB has been showing a consistent three digit growth over the past two years with an increase in value of payments by +321%. Over the last year, RMB payments grew in value by 102% compared to an overall yearly growth for all currencies of 4.4%.
Photo: LinkedIn. Jean Pierre Mustier Joins Tikehau Capital for Expansion
Jean Pierre Mustier, formerly head of corporate and investment banking at UniCredit, has joined Tikehau Capital as a partner to help the fund manager’s international expansion.
Mustier joined in early January and is based in London. He stepped down from UniCredit at the end of 2014 after a tenure of almost four years at the bank. He is, however, still a member of UniCredit’s international advisory board.
As well as overseeing Tikehau’s international expansion, Mustier will contribute to the fund manager’s existing business.
Tikehau Capital Group manages $5bn for institutional and private investors in various asset classes – listed and private equity, credit, private debt, and real estate – through its asset management subsidiary, Tikehau IM.
Photo: ITU Pictures. Beamonte Investments to Acquire Venture Academy
Beamonte Investments, along with is affiliate, Beamonte Mexico Holdings, announced it has invested in Venture Academy, an educational platform for training entrepreneurs how to raise money through a four day intensive boot camp designed to provide attendees with the information, guidance, and advice to run their businesses. After the closing, Venture Academy will be a wholly owned by Beamonte.
Based in Mexico City and with offices in Boston, MA Venture Academy was born from the idea that with the right information and guidance, any start-up can be successful. The path from business idea to business maturity can be long and difficult, with many uncertainties along the way. Most start-ups know where they want to go, but do not know hot to get there. They have a vision, but lack funding. When money from friends and family is not enough, outside capital is needed.
Venture Capital firms see hundreds, if not thousands, of slide decks per year. Of these, only about 10% ever get a first meeting. A meeting with an institutional investor could be the make-or-break moment for any start-up. Knowing how to approach investors is critical to getting the capital entrepreneurs need to grow their businesses.
“We notice a huge gap between entrepreneurs and private investment firms. We are the guys on the other side of the table, we know what wins and what loses; our goal is to build more bridges between entrepreneurs and investors,” said Claudia Yan, Manager at Venture Academy.
Venture Academy will provide the knowledge and tools to ace this test.The boot camp consists of an intensive program divided in six modules, including management 101, valuations, term sheets, financing, immigration and more. Venture Academy plans to do multiple boot camps each year.
Beamonte has an outstanding track record on Venture Capital in the United States, recently investing in Arthena and Nanostatisfi. They are eager to replicate the same success in emerging markets such as Mexico and Colombia.
Luis F. Trevino, Senior Managing Director at Beamonte Investments commented, “There are talented and driven entrepreneurs with great ideas claiming there are no funds nor financial opportunities to develop their businesses. On the other hand, there are people like us, keen to find the next big project to invest, develop, and grow. The biggest obstacle to sealing a Venture Capital deal is a lack of sophistication during the negotiation process.”
Beamonte Investments is a single family office located in Boston, Massachusetts. Beamonte has been a pioneer in direct venture capital and private equity investments, credit alternatives, and activist investment campaigns, as well as a pioneer in cross border transactions with Latin America. Since its inception, the firm has executed, as principal and agent, over $5 billion USD in transactions.
Guernsey-based Praxis Group and Jersey-based IFM Group have announced plans to merge and create one of the largest independent and owner-managed financial services groups headquartered in the Channel Islands.
With combined revenues of over £23 million, assets under administration of more than $30bn, nine offices around the world and over 200 people, PraxisIFM will offer private and corporate clients an increased range of services and a global footprint. Subject to regulatory approval, the new group will be known as PraxisIFM to reflect the merger of two existing businesses of a similar size with strong performance, proud histories and solid reputations.
‘As long-standing, independently-owned and managed businesses, Praxis and IFM share similar values and culture. Both businesses strive to offer excellent client service, added value and continuity of teams. These will remain at the heart of the PraxisIFM Group,’ said Brian Morris, who will become the merged group’s executive chairman.
PraxisIFM will continue to focus on delivering outstanding private client services, fund administration, corporate and trade services including cross-border trade facilitation, asset finance, pensions and treasury operations. PraxisIFM’s offices will be located in Guernsey, Jersey, Switzerland, Malta, Luxembourg, South Africa, New Zealand, Mauritius and Dubai, with representation in the UK.
Wyvern Partners have assisted with the transaction.
