At a time when Mexico’s Vector Casa de Bolsa is undergoing a process of dismantling—after the U.S. Department of the Treasury accused it, along with CI Banco and Intercam, of facilitating money laundering—the international arm of the firm, VectorGlobal Wealth Management Group, has come under new ownership. The buyer: U.S.-based financial advisory group Insigneo Financial Group, which with this acquisition strengthens its foothold in Latin America.
According to a statement issued by the wealth management firm, the agreement includes client accounts from both VectorGlobal WMG and its RIA in Miami, VectorGlobal IAG.
Thus, the transaction includes the transfer of more than $4 billion in client assets from across the continent, including Colombia, Chile, Mexico, Ecuador, Peru, Venezuela, the United States, and Canada. This will allow the firm to establish a stronger position in the region, reaching total assets under management of approximately $35 billion.
In addition, the transaction includes a three-year referral agreement between Insigneo and Casa de Bolsa Finamex for the referral and servicing of the latter’s offshore client accounts, recently acquired from Vector Casa de Bolsa.
Around 80 Professionals and Executives Join Insigneo But the acquisition doesn’t only involve the assets: approximately 80 investment professionals and key executives from Vector will be considered to join Insigneo‘s team once the agreement is signed, according to the details provided.
“This transaction represents a significant milestone in the execution of Insigneo’s growth strategy,” stated Raúl Henríquez, CEO and Chairman of the Board of the acquiring firm. “This acquisition will allow us to reinforce and expand our geographic presence, strengthen our team to better serve our clients, and reaffirm our firm’s commitment to Latin America,” he added in the press release.
Looking ahead, the transaction is pending regulatory approval, but it is expected to be fully closed in the first quarter of 2026.
This is the third major transaction the firm has carried out in a few years, having acquired the international businesses of Citi in Puerto Rico and Uruguay in 2022, and integrated the offshore accounts of PNC for Mexican clients in 2023.
All in all, the U.S.-based financial advisory firm has 280 investment professionals and 68 institutional firms in its network, serving a total of more than 32,000 clients in various countries.
Latin American Giant Patria Investments Closes Its Fifth Infrastructure Fund, Making It the Largest Vehicle of Its Kind in the Region
The Latin American alternative investment giant Patria Investments announced the closing of its fifth infrastructure fund, making it the largest vehicle of that asset class in the region. With a diversified portfolio — both in terms of countries and sectors — the Brazilian-headquartered firm continues to strengthen its commitment to real assets in Latin America.
This new fund, called Patria Infrastructure Fund V, according to a statement released by the firm, raised $2.9 billion, including capital commitments and vehicles related to the investment program. According to data from Preqin and Infrastructure Investor, this makes it the largest vehicle dedicated to infrastructure investment in Latin America.
The strategy, the firm explained, is well diversified across the region, with a strong presence in Brazil, Colombia, and Chile. At the sector level, the portfolio focuses on strategic areas, including toll roads, data centers, water desalination plants, renewable energy, and electric mobility.
As part of its closing, Patria’s fifth infrastructure fund attracted commitments from both new and returning investors, including sovereign wealth funds, pension funds, asset managers, insurance companies, and development finance institutions.
Moreover, the vehicle has already completed some investments and co-investments in Chile, Colombia, and Brazil. Additional commitments are anticipated in the coming months within Fund V’s portfolio.
“Patria’s deep expertise in the region’s sectors strongly positions us as a local gateway for investors,” said Felipe Pinto, Managing Partner and Head of Infrastructure Development Funds at the firm, adding that the investment house “has managed to create solutions by leveraging the inherent benefits of real assets” across Latin America.
Key Spaces in the Asset Class
According to Patria, its team has identified a “relevant and attractive” market in Latin American infrastructure, valued at over $90 billion for the next 5 to 7 years across its key operational sectors. This includes recurring investment theses such as highways and renewable energy, as well as emerging secular trends such as electric mobility and the sectors of sanitation and waste management.
The strategy envisions growth coming from renewable projects and initiatives tied to the energy transition. Meanwhile, opportunities in logistics and transportation will be driven by new highway concessions, commodity logistics, and urban mobility projects.
In addition, the expansion of data centers and 5G networks will continue to create opportunities within the digital infrastructure space, while the waste management sectors and the privatization of sanitation assets will help drive opportunities within environmental services.
“We anticipate continued growth, both in terms of client demand and investment opportunities, in the Latin American infrastructure market,” emphasized Andre Sales, Managing Partner and CEO of Patria Infrastructure, “driven by the persistent need for private capital in local infrastructure and the evolution of local capital markets.”
In an environment where international expansion demands complex structures and high regulatory costs, asset managers are seeking more agile ways to scale their strategies. Asset securitization, especially through listed and Euroclearable exchange-traded products (ETPs), has become an effective way to compete internationally without replicating corporate infrastructures across multiple jurisdictions, according to FlexFunds.
Launching a conventional investment fund involves establishing local management entities, complying with diverse regulatory frameworks, and undergoing lengthy registration and distribution processes. These requirements can take months and consume legal, tax, and operational resources that erode profitability.
Furthermore, custodian banks and institutional platforms require products with full operational compatibility — ISINs, automated reconciliations, standardized reporting, and recurring audits. When a vehicle does not meet these standards, its integration into private banking or wealth management networks becomes slow and costly.
Securitization and ETPs: A modern distribution architecture
Through securitization, a managed strategy is converted into a structured vehicle with an ISIN and international custody (Euroclear / Clearstream), without the manager losing control of the portfolio. This format enables the repackaging of specialized strategies — such as private credit, real estate, fixed income, or alternative assets — into instruments that are easily integrated into institutional systems, reducing entry barriers and improving transparency.
The III Annual Report of the Asset Securitization Sector 2025 – 2026, prepared by FlexFunds in collaboration with Funds Society, highlights the role of Ireland as a preferred jurisdiction for structuring securitized ETPs. Thanks to its Section 110 of the Taxes Consolidation Act, supervision by the Central Bank of Ireland, and connectivity with Euroclear, the country offers a robust and internationally recognized infrastructure.
FlexFunds’ ETPs leverage this framework by being structured through Irish Special Purpose Vehicles (SPVs), which combine tax efficiency, operational standardization, and global distribution. According to the report, over 70% of surveyed managers view this model as a key tool for internationalization, citing its low operational cost and fast launch timeline — 6 to 8 weeks, compared to several months for a conventional fund.
Additionally, the Irish SPV Report Q2-2025 confirms Ireland’s leadership in this field, with 3,724 active SPVs and total assets of €1.18 trillion, driven by structured debt vehicles such as CLOs and private securitizations. Financial Vehicle Corporations (FVCs) hold €689 billion in assets, while Other SPEs total €490.7 billion, reflecting the maturity of Ireland’s securitization ecosystem.
The growth of the securitized model is occurring alongside the record expansion of the global ETP market. According to ETFGI’s September 2025 report, assets under management in ETFs and ETPs reached $18.81 trillion, the highest level on record. This increase reflects a sustained trend towards institutionalization and standardization of listed structures, driving demand for efficient, transparent, and easily distributed products.
Advantages of ETPs for asset managers
International scalability: Access multiple jurisdictions without creating new subsidiaries.
Efficiency and speed: Standardized structures allow launches within weeks.
Institutional compatibility: ISINs and international custody ease integration with banks and platforms.
Control retention: Managers maintain decision-making over assets and risks.
Transparency and credibility: Independent valuation, auditing, and reporting enhance investor confidence.
The report by FlexFunds and Funds Society highlights securitization as a lever for innovation and diversification, particularly for strategies seeking institutional capital without losing operational flexibility.
Securitization has evolved into a strategic tool enabling portfolio managers to expand their global reach with efficiency and control. Far from being a product reserved for large institutions, these investment vehicles now offer a practical, regulated, and competitive path for internationalizing portfolios, improving governance, and connecting with investors worldwide.
For more information, please contact our specialists at info@flexfunds.com.
Brookfield to Acquire Remaining 26% of Oaktree Capital Management for $3 Billion
Brookfield has announced that it will acquire the remaining 26% of Oaktree Capital Management that it does not yet own for approximately 3 billion dollars, enabling it to take full ownership of the Los Angeles–based firm specializing in credit and distressed debt. The deal will also strengthen Brookfield’s position as a major force in the alternative credit space, according to a Bloomberg report.
The agreement, which values Oaktree at around 11.5 billion dollars, is set to close early next year and will contribute to Brookfield’s revenue. The company first acquired a majority stake in Oaktree six years ago, accelerating the growth of its credit business, which has since become one of its fastest-growing divisions. Once the transaction is completed, the United States will become Brookfield’s largest market, representing more than half of its 550 billion dollars in assets and revenue.
CEO Statements and Strategic Vision
Following the announcement, Brookfield CEO Bruce Flatt stated: “When we partnered with Oaktree six years ago, we joined forces with one of the most respected credit investors in the world, and the results have exceeded our expectations. Our partnership has created significant value for both companies. It has fueled the rapid expansion of our private credit platform, supported the growth of our wealth solutions business, and contributed to a 75% increase in Oaktree’s assets under management. Taking this next step will allow us to expand our credit franchise, enhance collaboration across our businesses, and strengthen our ability to continue delivering long-term value to our investors.”
Howard Marks, Co-Chairman of Oaktree, commented: “Our partnership with Brookfield has been a great success, built on shared values of disciplined investing, long-term thinking, and integrity. Together, we have proven our ability to work seamlessly and deliver the best of both firms to our clients. Becoming a full part of Brookfield is a natural evolution that will allow Oaktree to continue thriving as part of one of the world’s leading investment organizations. With this closer alignment, Oaktree will remain central to Brookfield’s credit strategy, and we see significant opportunities to grow the franchise and expand what we can offer together to our clients.”
Transaction Terms
According to the proposed terms, Brookfield Asset Management Ltd. (BAM) and Brookfield Corporation (BN) will acquire all remaining equity interests in Oaktree for a total consideration of approximately 3 billion dollars. Under the terms of the transaction, Oaktree shareholders will have the option to receive a cash consideration, shares of BAM, or, subject to certain limitations, shares of BN.
The BAM and BN shares issued as consideration will be subject to sale restrictions of two and five years, respectively. This structure provides Oaktree holders the opportunity to participate in the future growth and earnings of the combined business while further enhancing long-term alignment.
Both BAM and BN intend to repurchase an amount of their own shares equivalent to those issued under the transaction. These repurchases will be conducted in the open market or, in BAM’s case and subject to regulatory approvals, from BN, which has agreed to make such shares available. This ensures that the transaction will have minimal or no dilutive impact on current BAM and BN shareholders.
The deal marks a significant increase in Oaktree’s valuation, as its assets under management have grown by 75% since Brookfield’s initial investment. It also follows a broader wave of consolidation among alternative asset managers, including BlackRock’s acquisition of Global Infrastructure Partners for 12.5 billion dollars.
In 2024, assets under management reached a record 135 trillion dollars, representing a 13% year-over-year increase. However, according to the latest report by Morgan Stanley and Oliver Wyman, by 2029, global assets in the asset management industry could reach 200 trillion dollars, implying an annual growth rate of around 8% and a cumulative increase of 48%. In addition, they estimate that average annual net flows will be around 2.7% through 2029.
These projections are based on the assumption that markets will maintain strong performance and that we are in an environment with lower interest rates, which are redirecting funds from guaranteed deposits back into capital markets. They also consider a context in which there is an ongoing shift from collective pension plans (defined benefit) to individualized retirement plans (defined contribution). All of this, they argue, could further sustain flows in the future.
Passive Management and Private Markets
In this global overview of what asset growth will look like, the report identifies several trends that will shape the evolution of the industry and asset managers’ business models. First, it notes that, for the first time globally, passive equity will surpass active equity. “Passive equity management continues to expand, especially in established markets like U.S. retail and in underpenetrated regions such as Europe and Asia-Pacific. In contrast, active equity funds are facing persistent outflows at the industry level, sustained only by a few managers delivering top-quartile performance,” the report states.
Notably, the fixed income segment shows a similar trend: “Although passive fixed income assets are expected to grow twice as fast as active assets, they will remain a relatively small segment of the market by 2029.”
Regarding Private Markets, the report considers that we are currently in a “plateau” phase following the boom from 2019 to 2022 and the stagnation of 2024. “This plateau masks a growing disparity between leading firms and smaller players. The top 10 private asset funds by assets captured 14% of fundraising in 2024, compared to 10% in 2020, a figure that rises to 48% and 58% of the capital raised in 2024 for private debt and infrastructure, respectively,” the report notes.
Their interpretation is that larger firms, benefiting from proprietary capital and deal generation, continue to outperform their competitors, securing the bulk of new capital flows and charging premium fees. “Smaller managers face fundraising challenges and often compete by offering fee discounts—a divide that is likely to intensify as wealth distribution channels (where most of the growth is expected) increasingly favor larger and more recognized brands,” they argue. Looking ahead, however, they expect significant growth across all private markets, driven by their increasing penetration into retail client portfolios.
Growth Drivers
Regionally, the report identifies Asia-Pacific as standing out for its higher organic net flows into both retail and institutional markets, particularly in China. It explains that, despite recent slowdowns, a significant portion of household wealth remains in low-yield deposits, highlighting untapped potential—especially in Japan.
In addition, global retail channels are projected to grow at twice the rate of institutional segments, which are experiencing net outflows except in certain niches such as general insurance accounts and some defined benefit pension markets (e.g., Japan, Australia). “Asset growth in Europe is expected to benefit from regulatory efforts encouraging retail participation and from the ongoing shift toward individualized retirement plans, through new vehicles and incentives (France, Germany) or mandatory auto-enrollment in defined contribution plans (United Kingdom),” the report states.
In this context, asset managers have found a path to continued growth, specifically through solution-based offerings. “These are becoming a key growth area, with the segment expected to expand at an annual rate of 11% through 2029,” the report notes.
The document explains that asset managers are increasingly adopting solutions in the form of model portfolios, sub-advisory mandates, and retirement-focused products to differentiate themselves. According to the analysis, this growth is being driven by rising demand for retail retirement investment products (e.g., target-date funds, target-maturity funds, decumulation products), with average organic growth over the past three years of 12% in APAC, 15% in Europe, and 7% in the Americas, as well as by the expansion of institutional solutions in the Americas, particularly outsourced chief investment officer (OCIO) mandates, which have grown organically by 7% since 2021.
Margins and Business Sustainability
In terms of revenue, the report concludes that the asset management industry will generate more than 650 billion dollars by 2029, in line with the estimate that assets will grow at an annual rate of around 8%. According to the report, alternatives are expected to claim an increasingly larger share, representing 44% of total revenue, while the share of active equity and fixed income funds declines.
This positive news is accompanied by a very clear warning: fee compression persists, though it is being offset by the shift toward higher-margin private markets and retail growth. “Asset managers’ operating margins improved in 2024, particularly among alternatives, which reached a record 51%. However, traditional managers continue to face structural profitability challenges amid ongoing fee pressure and cost-control demands—especially those using hybrid operating models (combining traditional and alternative asset management) who struggle to efficiently integrate distribution and product development,” the report concludes.
Finally, the report notes that, in this growth context, asset managers must address four themes that are reshaping the industry and present both challenges and opportunities.
First, leaders are facing increasing pressure to demonstrate value for money in Europe and APAC. Second, they must organize their product and distribution forces to serve a growing retail market that increasingly demands institutional-quality coverage. Third, they need to deploy operating models capable of blurring liquidity boundaries to address the burgeoning semiliquid product space. Finally, they must think beyond the active/passive dichotomy and build investment engines suited to address the full spectrum of tracking error.
The government led by Javier Milei heads into the midterm elections this Sunday, October 26, in a completely unprecedented situation: with the United States Treasury committed to providing financial assistance to the country of up to 40 billion dollars, intervening in the foreign exchange market to calm volatility, and promising trade agreements.
The U.S. aid became effective after the ruling party lost by 13 points in the early September elections in the province of Buenos Aires, which accounts for nearly 40% of the national electorate. Therefore, these upcoming national legislative elections will be key for the government, which needs to expand its parliamentary representation and build consensus with the opposition to pass structural reforms.
Funds Society consulted with experts from international asset managers. Most agreed that the U.S. economic rescue is a temporary relief rather than a structural solution and that it is not enough to define a credible medium-term investment framework. They also pointed out that after October 26, the exchange rate should float and that the country should accelerate the pace of reserve accumulation.
WSJ and FT: Critical Editorials
Under the suggestive title “Argentina: Right Country, Wrong Bailout,” the Wall Street Journal stated in an editorial that “dollarization is the right and now essential political alternative” for the South American country, after warning that “this bailout is likely to throw good dollars after bad pesos without monetary reform in Buenos Aires.”
The paper also emphasized that “no one is sure how long this era of reforms will last” and mentioned that Economy Minister Luis Caputo “is opposed, as are some funds that benefit from a currency carry trade that would disappear with dollarization.” The conclusion was damning: “The default remedy is always devaluation” for Argentina.
According to the WSJ, “after the elections, Scott Bessent will waste dollar assets on this bailout if he doesn’t pressure Milei to restore sound money through dollarization.”
The Financial Times also published a harsh editorial, describing the partnership between Bessent and Milei as a “risky venture,” suggesting that the U.S. official “should understand the madness of defending” the current dual-band exchange rate system in Argentina, and stating that the U.S. is “throwing money at a serial defaulter” that even threatens competition with soybean producers.
“If madness is repeating the same action and expecting a different result, then a central pillar of Argentina’s economic policy borders on insanity,” the British newspaper wrote. The South American country needs “less anarchy and more capitalism,” the article concluded, referencing the Argentine president’s self-description as an anarcho-capitalist.
The View of International Asset Managers
On October 9, the U.S. Treasury confirmed direct purchases of Argentine pesos and a 20-billion-dollar swap framework with the Central Bank of Argentina. Interventions in the foreign exchange market continued, and on October 15, Bessent said he was in talks with banks to coordinate a debt facility of 20 billion dollars (in addition to the swap), raising potential support to 40 billion dollars. The institutions involved would be JP Morgan, Bank of America, Goldman Sachs, and Citigroup, according to media reports.
“The size and scope of the U.S. Treasury’s financial assistance program are remarkable, but its legitimacy will depend on Milei maintaining veto power in the upcoming midterm elections,” assessed Jason DeVito, senior portfolio manager of emerging markets debt at Federated Hermes.
According to DeVito, if the result is favorable to the government, “we will see momentum toward further deregulation and additional fiscal discipline.” In that scenario, Federated Hermes expects a move toward a more flexible exchange rate and an improvement in current account indicators.
Carlos Carranza, senior manager of emerging markets debt funds at M&G Investments, pointed out that after the elections, volatility will likely decrease “as the focus returns to fundamentals.”
The expert logically noted that President Milei will remain in office for at least two more years, “regardless of the electoral outcome. Meanwhile, it is worth noting that Argentina’s macroeconomic outlook remains largely constructive.”
On the fiscal front, the government continues to maintain a balanced budget (that is, with no primary fiscal deficit), “which is an uncommon achievement in both emerging and developed markets,” he indicated. Moreover, inflation remains largely anchored and, although monthly figures have persistently hovered around 2–3%, year-on-year measurements still show a slowdown.
Among the fundamentals, Carranza also highlighted that the South American country’s GDP growth “remains on track to register a solid 4.3% in 2025, even despite some downward revisions in recent months.”
Short-Term Support
Meanwhile, Alejo Czerwonko and Pedro Quintanilla-Dieck, from the Chief Investment Office at UBS, emphasized in a special report dedicated to Argentina that the U.S. intervention acts as a short-term “circuit breaker,” by strengthening the Central Bank’s reserves and reducing the risk of uncontrolled inflation.
The report highlights that this maneuver improves the chances of Javier Milei’s government regaining some political capital in the elections, although doubts persist regarding the sustainability of the exchange rate system and the pace of reserve accumulation.
UBS considers the package a temporary relief rather than a structural solution and maintains a neutral view on Argentine bonds, awaiting greater clarity on stabilization policies.
From the asset manager Payden & Rygel, Alexis Roach, emerging markets analyst, stated that “a landslide victory does not seem necessary to guarantee the country’s governability: a balanced outcome, in which the ruling party outperforms the Peronists, would be enough.”
Roach considered that “the financial support from the United States, although significant, is not enough to define a credible medium-term investment framework. After the elections, the market’s attention will focus on the government’s ability to reach agreements with centrist forces to secure a parliamentary majority, as well as on the strategy to regain access to markets.”
The fact is that the Argentine president showed a shift after being defeated in the Buenos Aires provincial elections. In addition to the U.S. economic bailout, he added a more moderate tone to his rhetoric, attempted to begin a dialogue with the more rational opposition, and showed an effort to connect with voters who have been enduring an adjustment that, although it helped reduce inflation, has yet to translate into improvements in the microeconomy.
Household delinquency in the South American country rose for the tenth consecutive month in August, reaching 6.6% of total credit—marking a new record in at least 15 years, according to the Central Bank’s banking report. Meanwhile, interest rates for overdrafts—one of the most common ways for small and medium-sized enterprises to finance working capital—increased from around 80% to 190% nominal annual last week, reaching the highest level in at least 17 years.
On top of all this, the dollar—the eternal social barometer of pre-election Argentina—recorded its biggest daily increase in nearly six weeks on Friday, October 17, while financial dollars (MEP and CCL) surpassed 1,500 pesos, despite the firepower implied by the interventions from the U.S. Treasury.
Brand building has become a valuable factor for the competitiveness of international asset managers. According to the annual Global 100 Asset Management Marketing Report, prepared by BCG, BlackRock, Fidelity Investments, and Capital Group are the top three investment firms with the strongest brands, followed by T. Rowe Price and Aviva Investors.
Brand Building Becomes a Key Competitive Factor for Asset Managers
Brand building has become a key asset for international asset managers seeking to strengthen their competitiveness. According to the annual Global 100 Asset Management Marketing Report, published by BCG, BlackRock, Fidelity Investments, and Capital Group are the top three investment firms in brand strength, followed by T. Rowe Price and Aviva Investors.
“The Global 100 2025 shows that the asset management sector continues to go through a period of profound change. It’s clear that many managers are facing existential questions. How can we scale? Should we consider inorganic growth? How do we incorporate artificial intelligence into our business practices and marketing without losing what makes us unique? How do we breathe new life into a stagnant brand? It has never been more important for senior marketing leaders to make data-driven decisions in executive-level conversations,” the report’s authors state.
The report finds that 45% of firms are experiencing stagnation or decline in brand recognition, a figure that, while not as high as in previous years, still indicates that nearly half of executives are failing to create brand value. “This is clearly a challenge for a sector that relies on visibility and whose strategy, for many firms, is focused on reaching new audiences—especially retail clients and wealth groups,” the report notes. The global share of voice (SOV) has also declined by 5% compared to two years ago, signaling increased competition for media coverage.
Among firms focused exclusively on private markets, 88% had below-average media perception, and over 75% received clearly negative sentiment. “Among major players, Blackstone and Apollo scored only 4/10 in media perception. Top private market players like Blackstone appear to have become ‘lightning rods’ for the sector, attracting ten times more search interest than similarly sized firms outside the private equity space,” the report says.
The report also highlights slow progress in paid media strategies. 39% of firms still lack a permanent paid search strategy, only a slight improvement from 43% in 2023. 85% of firms had no sustained presence in paid media in 2025, compared to 80% in 2023, indicating stagnation in paid media adoption.
Using the Peregrine Frame analysis model, the report finds that most firms cluster around 16 recurring key message areas, with client focus, ESG criteria, and research-based investing being the most common. Over 90% of firms list client focus among their top three core messages, suggesting that messaging often gravitates toward consensus rather than differentiation. “In a sector where consolidation is accelerating and the competitive landscape remains intense, brands need to be bolder in their positioning,” the report warns.
The report emphasizes that brand positioning is not superficial; it is material and deeply linked to bottom-line outcomes. “Peregrine’s analysis shows a strong correlation between high category authority (message distinction and niche dominance) and AUM growth, and the reward is exponential.” Firms with low authority are not only less likely to achieve significant AUM gains but are also more prone to AUM losses. 27% of firms with low scores saw their AUM decrease, compared to less than 10% among firms with high scores.
The combined forces of retailization and the rise of active ETFs are reshaping the asset management landscape, making visibility among emerging audience segments a key driver of competitiveness. At the same time, margin pressure is intensifying, placing cost control at the top of the corporate strategic agenda, according to BCG’s analysis.
However, the impact on decision-making varies by firm type and market niche. Alpha generators—such as alternative asset managers and active firms—are focusing on talent attraction and retention while strengthening their corporate narrative around the uniqueness of their human capital. This trend is particularly visible in large multi-strategy managers. In contrast, beta factories—large managers with heavy exposure to passive strategies—are emphasizing operational efficiency, scale, and technology as the core of their value proposition. For distribution powerhouses and solution providers, brand is becoming an increasingly important factor at the decision-making level.
The central challenge, BCG concludes, is to transform marketing leadership into AUM leadership, thereby solidifying a firm’s position in an increasingly competitive and diversified market.
Goldman Sachs Group Announces Agreement to Acquire Industry Ventures, a Leading Venture Capital Platform Investing Across All Stages of the VC Lifecycle
Goldman Sachs Group has announced an agreement to acquire Industry Ventures, a leading venture capital platform that invests across all stages of the venture capital lifecycle. Currently, Industry Ventures manages $7 billion in assets under supervision and, since its founding in 2000, has made more than 1,000 primary and secondary investments.
According to David Solomon, Chairman and CEO of Goldman Sachs, Industry Ventures was a pioneer in secondary venture capital investments and early-stage hybrid funds—areas that, in his view, are growing rapidly as companies remain private longer and investors seek new forms of liquidity.
“Industry Ventures’ trusted relationships and venture capital expertise complement our existing investment franchises and expand opportunities for our clients to access the world’s fastest-growing companies and sectors,” stated Solomon.
For his part, Hans Swildens, founder and CEO of Industry Ventures, added:
“We believe the venture capital market is at a key inflection point, as technology and artificial intelligence transform the world. By combining Goldman Sachs’ global resources with Industry Ventures’ venture capital expertise, we are uniquely positioned to meet the growing needs of entrepreneurs, private tech companies, limited partners, and fund managers, while driving the growth of this essential economic engine.”
As part of the agreement, all 45 employees of Industry Ventures are expected to join Goldman Sachs. Hans Swildens, along with senior executives Justin Burden and Roland Reynolds, will be named partners of Goldman Sachs Asset Management. The transaction will include an initial payment of $665 million in cash and stock at closing, as well as additional contingent compensation of up to $300 million, also in cash and stock, subject to Industry Ventures’ future performance through 2030. The deal is expected to close in the first quarter of 2026, pending regulatory approval and customary conditions.
Key Details of the Transaction
According to both companies, Industry Ventures will be integrated into Goldman Sachs’ external manager platform, the External Investing Group (XIG), which manages more than $450 billion in AUS across traditional and alternative strategies. In private markets, XIG is a leading player in co-investments, alternative manager strategies, its secondaries platform Vintage Strategies, and its GP stakes business Petershill GP Stakes.
This acquisition brings attractive technology investment capabilities to benefit Goldman Sachs’ global client base and diversifies its $540 billion alternatives investment platform, which spans growth equity, buyouts, real estate, infrastructure, life sciences, sustainability, and private credit.
To understand this transaction, it is worth noting that Goldman Sachs AM has been a limited partner in Industry Ventures’ funds for over two decades, offering its strategies to clients for more than ten years. In addition, Petershill Partners has held a minority stake in the firm since 2019. With this deal, Goldman Sachs will acquire 100% ownership of Industry Ventures. As highlighted, the acquisition will strengthen the bank’s ability to offer comprehensive solutions to entrepreneurs in the tech sector, supported by its leading position in TMT (technology, media, and telecommunications) investment banking and its strong global wealth management platform.
Industry Ventures Profile
Industry Ventures has been a pioneer in various segments of venture capital, from offering secondary liquidity solutions and seeding emerging VC funds to co-investing in high-growth early-stage companies and participating at the intersection of venture capital and tech buyouts.
The firm holds one of the broadest portfolios of venture capital partnerships in the U.S., with investments in over 800 venture capital and technology funds and collaborations with more than 325 managers as a limited partner, liquidity provider, and strategic co-investor.
President Trump’s Pressure to Cut Interest Rates in 2025 Has Dominated Headlines. However, in My View, There Are Several Reasons to Anticipate a Significant Shift in the Structure, Responsibilities, and Processes of the Federal Reserve Next Year. These changes could affect the central bank’s independence and its ability to set effective monetary and supervisory policy, ultimately influencing the value of the dollar, long-term bond term premiums, and the multiples at which equities trade.
Personnel Policy
Moderation in the Fed’s interest rate decisions will only be viewed positively if data supports it; otherwise, the dollar could depreciate and long-end yields could rise, as the market would price in higher inflation and less confidence in monetary policy. In other words, government pressure to cut rates in the short term may come at a cost if the Fed deviates from its usual playbook.
That playbook, moreover, only works if those implementing it are equally effective. A change in the Fed chair was already expected in May 2026, but now, with the president’s attempt to remove Lisa Cook, a member of the Board of Governors, it is likely that most of the seven members will be Trump appointees: a possible replacement for Cook, in addition to Michelle Bowman, Christopher Waller, and the newly added Stephen Miran. The governors are part of the 12-member FOMC (Federal Open Market Committee — responsible for setting interest rates), along with the president of the Federal Reserve Bank of New York and four other rotating regional Fed presidents who serve one-year terms. Although there are 12 regional presidents, only the New York Fed president holds a permanent seat on the FOMC.
The composition of the Board in 2026 will matter for three key reasons:
The terms of the 12 regional presidents expire on the last day of February 2026, and the Board will decide who fills those posts for the next five years. It is plausible that a Board aligned with Trump could block the reappointment of a more hawkish regional president, or at minimum, influence the thinking of those seeking reappointment.
The Board, not the FOMC, is responsible for banking regulation, although this responsibility could change, as explained below. Therefore, Trump’s ideas about deregulation could gain traction in a newly configured Board.
The Board has the final say over the discount rate, the rate at which financial institutions can borrow directly from a Federal Reserve Bank; this rate acts as the ceiling for the federal funds rate.
Potential Interference in Fed Tools
As appointments unfold in the coming months, several areas should be monitored where the Fed’s authorities and tools could change:
Interest on Excess Reserves: One area of bipartisan agreement is the desire for the Fed to stop paying interest on excess reserves that banks are required to hold. Could we see a tiering of these payments starting next year, as scrutiny of the Fed increases? This would bring the Fed closer to the practices of other central banks and eliminate controversy around payments to commercial banks — including foreign ones — instead of to the Treasury.
Quantitative Tightening (QT): QT may conclude in 2026 when reserves reach a level that begins to affect market liquidity. So far, the Fed has reduced its balance sheet through QT, initially by trimming repo operations and more recently the Treasury General Account, without affecting bank reserves. It is worth recalling that earlier this year, the Fed significantly slowed its reduction of Treasury securities to prolong the process and ease the impact on liquidity. An independent Fed would likely consider equating the Treasury General Account with Treasury bill holdings and may be interested in shortening the duration of its fixed-income portfolio over time. But this is another area where personnel changes could be decisive, with implications for the composition and size of the Fed’s balance sheet.
Supervisory Powers: Treasury Secretary Scott Bessent recently highlighted the need to reduce the Fed’s role as the “chief regulator of U.S. finance,” a role he believes has yielded disappointing results since it was expanded under the Dodd-Frank Act. Specifically, Bessent has advocated transferring banking supervision to the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).
Implications for the Dollar, Fixed Income, and Equity Markets
Any change in the Fed’s powers and policies can have wide-ranging consequences, particularly in the following areas:
U.S. Dollar Liquidity: Currency swap lines — agreements in which the Fed exchanges dollars for foreign currencies with other central banks — are gaining importance globally. While the Fed has been a reliable source of dollar liquidity during times of global stress, the upcoming appointment of a new chair has raised concerns among other central banks about a potential shift. The Trump administration argues that such liquidity is a favor to allies, not an obligation. In response, proposals have emerged to allow central banks with large dollar reserves to lend to each other instead of relying on the Fed. If this materializes, in a crisis, those banks might liquidate their dollar reserves — invested in U.S. Treasury securities — destabilizing the debt market and forcing the Fed to act as buyer of last resort or to cap repo rates.
Yield Suppression: Bessent and other administration members have repeatedly emphasized the need for Treasury and the Fed to “row in the same direction” to redirect the economy. The implicit message is that it may be necessary to lower yields at some point to boost domestic production and reduce reliance on China — a strategy that would require continued fiscal spending and higher federal debt. Fiscal discipline can only come from the bond market and an independent Fed that bases its policies on the economy, not the Treasury’s needs. But if the Fed’s independence is constrained by those promoting more spending, bond markets may demand higher term premiums. Over time, in the event of a recession, a compliant Fed would likely be called upon to step in and cap interest rates to reduce the cost of public debt.
Higher term premiums could also weigh on equity valuation multiples, by increasing uncertainty around the institutional framework of U.S. monetary and fiscal policy. The possible outcome: Fixed income and equity market participants could react negatively to any signs of a diminished Fed ability to fight inflation. Greater inflation volatility is typically negative for long-term asset returns.
Beyond Interest Rates: A Question of Institutional Control and Long-Term Efficiency
If the administration increases its influence over the Fed, scrutiny over resource allocation, research agendas, and staffing decisions at the central bank is likely to rise. Criticism over staff size and daily operations could also lead to higher turnover at the institution. Additionally, efforts to audit the Fed may resurface, reinforcing demands for accountability. If realized, all these factors could significantly impact the Fed’s decision-making process and its ability to act independently and swiftly in times of crisis.
While markets tend to focus on short-term interest rate decisions, a broader issue is at play related to the regulation, supervision, and operation — the architecture — of central banks, with much wider implications, which I will continue to monitor closely in the coming months.
Opinion Column by Juhi Dhawan, Macro Strategist at Wellington Management
Thornburg Investment Management has announced a new strategic partnership with Capital Strategies Partners to serve institutional and wholesale investors in Italy and the Middle East. Through this collaboration, Thornburg IM will expand its international presence and offer investors in both regions access to its range of UCITS funds, including its flagship strategies: Equity Income Builder Fund, Global Opportunities Fund, and Strategic Income Fund.
“The partnership with Capital Strategies Partners represents an important milestone in our ongoing international expansion. Italy and the Middle East are important and growing markets for Thornburg IM, and we believe that Capital Strategies’ deep local knowledge, established relationships, and proven expertise make them the ideal partner to connect investors with Thornburg’s differentiated investment solutions,” said Jonathan Schuman, Head of International at Thornburg IM.
In this regard, Thornburg IM continues to strengthen its distribution network across Europe, Asia, and Latin America. The addition of Capital Strategies also reinforces the firm’s commitment to providing exemplary service to its clients. This agreement broadens Thornburg IM’s global reach and reflects the firm’s mission to deliver independent, research-driven, and disciplined investment solutions that help investors achieve their long-term financial goals.
“We are excited to partner with Thornburg IM. Their track record in managing high-conviction global equity and multi-sector credit strategies complements the evolving needs of institutional and professional investors in our regions. We look forward to bringing Thornburg’s expertise to our clients in Italy and the Middle East,” added Daniel Rubio, Founder and CEO of Capital Strategies.
According to Riccardo Milan, Head of Italy at Capital Strategies, the country continues to show strong demand for research-based global strategies. “Thornburg IM’s disciplined investment approach and ability to combine performance with risk management will be highly relevant for institutional and wholesale clients in Italy,” he noted.
Finally, Paolo Svetlich, Head of Sales at local Middle Eastern partner FMP Capital, added: “The Middle East is experiencing growing interest in high-quality international strategies. By partnering with Thornburg, we can offer our professional clients differentiated solutions aligned with their long-term objectives.”
