Alternative Investments
The global alternative investment space now sits at more than $9 trillion in global assets, and we’re just getting started. Roughly 40% of RIAs are using alternative investments. With the RIA space expanding and alternative investment demand rising among investors – a surge in data, news, and opinion will continue. This channel cuts through the noise to give you the most important actionable insight.
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SP Funds has expanded its suite of Sharia-compliant funds with the launch of The SP Funds S&P Global Technology ETF (SPTE) on the New York Stock Exchange. As North America’s largest family of Shariah-compliant exchange-traded funds (ETFs), SP Funds aims to provide investors access to cutting-edge technological advancements through SPTE.
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First Eagle Investment Management to Purchase THL Credit
First Eagle Investment Management with acquire THL Credit, an alternative credit manager with approximately $17 billion in assets under management. The deal will likely close in the first quarter, according to a joint press release.
Digital Assets: The YouTube-Vs.-Crypto Standoff Ends Happily Ever After
YouTube pushed crypto-channel owners into hiding. Now its admitted to an error. It will reinstate videos and resolve strikes.
Alternative Investments: America’s Student Loan Debt in 2019 Hits New Record
A college degree is no longer a tool; it’s a luxury available to the rich
About 45 million people in the US are being crushed under the weight of federal student loans. A third of this number are millennials in the age group from 25 to 35 years.
Outstanding Federal student loans are now perched at a gasp-worthy $1.5 trillion, the highest level ever. They now aggregate 8% of the US national income, according to the FT.
Alternative Investments: Now, BlackRock, Temasek in Chinese Wealth Management JV
Global asset manager BlackRock and sovereign wealth fund Temasek are making a beeline for the vast opportunities opening up in the Land of the Red Dragon. Chinese regulations now allow foreign entities to own a majority stake in a wealth management joint venture operating in China. The two behemoths will tie-up with China Construction Bank (CCB), according to Reuters.
Alberta Investment Management Joins KKR in Canadian Pipeline Deal
Alberta Investment Management is linking up with private equity giant KKR to purchase a big stake in TC Energy’s Coastal GasLink Pipeline. The Canadian pipeline project is part of a massive, C$40 billion effort to pump natural gas across British Columbia. The project will supply LNG from Dawson Creek to the plant near Kitimat. The project will pump about 2.1 billion cubic feet of natural gas each day.
Alternative Investments: Christmas Cheer as Fund Managers Cut Fees
In the ongoing ‘race-to-zero,’ Vanguard and Dimensional both cut fees this week.
Vanguard lowered expense ratios on three international income-oriented funds and four externally managed equity funds on December 19. For good measure, on December 24, the fund house followed that up with another reduction in fees on nine stock and bond ETFs and two active funds. Dimensional, too, added to the Christmas cheer with its own fee reductions.
Alternative Investments: Chinese Corporate Defaults Touch Record in 2019
As 2019 grinds to a close, Chinese corporate defaults surged to a record RMB 130 billion ($18.6 billion).
According to FT, which cited Bloomberg data, this value eclipsed the previous record of Rmb122bn last year.
The main cause appears to be corporate distress stemming from declining economic growth in China.
Private Equity Firm Lone Star Looking to Buy Unizo Holdings?
Unizo Holdings, the Japanese hotel company, said this weekend that a new bidder has emerged with a friendly offer. U.S. investment fund Lone Star is expected to launch a tender offer this week as part of a friendly bid to acquire the chain.
Alternative Investments: As China Liberalises, Amundi Wins Joint Venture Approval
Amundi Asset Management gains an early mover advantage in China.
Amundi, Europe’s largest asset manager with € 1.563 trillion of assets, secured approval for the first foreigner controlled wealth management joint venture in China.
On Friday, the China Banking and Insurance Regulatory Commission (CBIRC) greenlighted the Shanghai-based joint venture between Amundi and Bank of China Wealth Management (BOC). The JV would be owned 55% by Amundi and 45% by BOC.
Alternative Investments: PIMCO’s New ESG-Focused ETF
Bond giant PIMCO has launched RAFE, a smart beta ESG ETF. Here’s another environment-social-governance (ESG) focused ETF from PIMCO, the leading fixed-income fund house. Offered in collaboration with Research Affiliates, the Pimco RAFI ESG US ETF RAFE will track the Research Affiliates RAFI ESG U.S. Index. Research Affiliates RAFI ESG U.S. Index The Pimco RAFI…
FinTech: ZestMoney, the Loan Startup for India’s Credit-challenged, Raises $20 Million
ZestMoney, the Loan Startup for India’s Credit-challenged, Raises $20 Million from Goldman Sachs and others
U.K. Government Approves Private Equity Group Advent’s Cobham Buy
Advent International can purchase the defense company Cobham Plc for $5 billion. The U.S. private equity firm received permission from the British government after it made several concessions to address concerns about national security.
Former Chicago Board Options Exchange Director Gets Seven Years in Prison
Alvin Wilkinson once worked as director of the Chicago Board Options Exchange. Today, he’s facing seven years in prison, according to a statement from the U.S. Attorney’s Office for the Northern District of Illinois. Wilkinson swindled millions from unsuspecting investors over a 17-year period. He faced charges of mail fraud and wire fraud in 2017. Among the at least 30 victims of his Ponzi-type scheme were friends, family, and colleagues.
Alternative Investments: SEC to Redefine The Term “Accredited Investor”
The SEC is proposing to amend the rules that define the term “accredited investor,” a class of investors allowed to invest in private market investments such as hedge funds and startups. The threshold to qualify as an accredited investor is currently $1 million.
CB Insights Notes Record CVC Investment in Fintech
According to a report released Tuesday, financial services companies have pumped $8 billion across 329 Fintech deals during 2019. Roughly 50% of those capital injections have come from banks, while the third quarter experienced a new record for corporate venture capital (CVC) in the space. The report notes that banks and other firms are looking to put money into investments with upside at a time that interest rates are low.
Warburg Pincus’ Jeffrey Perlman Bullish on Vietnam
Jeffrey Perlman of Warburg Pincus is bullish on Vietnam and worried about companies with a high cash-burn rate. In an interview with DealStreetAsia, the Warburg managing director outlined his views of the market heading into 2020.
Alternative Investments: Biotech ETFs Suffer from Political Posturing on Drug Prices
The iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB), the largest biotech-related ETF, has been losing ground since Monday. The ETF is locked inside a downward channel and is making lower-highs and lower-lows. Concerns on pre-election posturing around drug pricing appear to be pressuring IBB, the largest biotech-related ETF.
Dealbook: Private Equity Fundraising to Drop in 2020
Private equity fundraising is set to decline next year, according to Pitchbook. In a report, the research firm projected that PE capital raising would slow down in the European and American markets as companies look to deploy capital. The slowdown would follow what has been a record year for capital raising in the sector.
SAP Spinoff Venture Capital Group Raises $1.4 Billion for New Opportunities
Sapphire Ventures has raised $1.4 billion for growth investments, an outlet that will also provide $150 million to boost larger deals. The group, which spun out of SAP, has traditionally focused on enterprise technology companies that operate out of Israel and Europe. It has successfully funded companies like Sumo Logic, TransferWise, and 23andMe. The capital raise represents the largest event to date. The venture arm now has an AUM of $4 billion.
Former Hedge Fund Manager Stanley Druckenmiller Has Regrets
The Duquesne Family Office finally hit double-digit returns last week, according to Stanley Druckenmiller. In an interview with Bloomberg Television, the former hedge fund manager said he “couldn’t have been more wrong” when it came to 2019. Druckenmiller said he had sold all of his equities and turned to the bond market after President Donald Trump increased geopolitical tensions with China. He had been 93% invested in the equity markets at the time.
The Saudi Arabia Sovereign Wealth Fund Launches Fund of Funds Company
The Saudi Arabia Sovereign Wealth Fund has launched its own fund of funds firm. The Public Investment Fund will put 4 billion riyal – or $1.07 billion – forward to support small- and mid-sized businesses.
Sun Life Financial Takes Big Stake in Real Estate Manager
Sun Life Financial and its alternative asset management arm just received a boost. Sun Life announced it plans to purchase an 80% stake in the infrastructure and real estate investment manager InfraRed Capital Partners.
Alternative Investments: Japanese Corporations Unlocking Value; ETFs to Buy
A Nikkei Quick survey showed that the percentage of Japanese companies that thought their shares were undervalued hit a high of 67% in 2019. This was the highest level since the introduction of Japanese reforms in 2013, according to FT. Japanese corporations shelled out a massive ¥7.2tn ($66bn) on share buybacks in 2019 between January and the end of November. Another trend is afoot and could accentuate in the near term. Japanese corporations are looking closely at their organizations and selling off subsidiaries, listed or otherwise.
Intel Scoops Up Israeli Artificial Intelligence Firm for $2 Billion
Intel Corporation has acquired Habana Labs for $2 billion.
Habana Labs is an Israel-based developer of programmable deep learning accelerators for data centers. The deal will deepen Intel’s artificial intelligence (AI) portfolio. It also accelerates Intel’s efforts into the fast-growing AI silicon market, which it expects to top $25 billion by 2024.