The Investment Funds sector is strengthening its organisation and competitiveness to adapt to a sustainable environment of low interest rates and an abundance of available capital.
Managers must be creative in structuring their transactions and the nature of their investments in order to generate sufficient returns to satisfy their investors in a context of diminishing returns and high valuations for other asset classes and potential targets.
Strong market growth is leading to increased competition between funds, reinforcing the trend towards specialisation, particularly in Private Equity. In-depth sector expertise is therefore needed to anticipate changes in the markets and the underlying business lines and value targets. The banking and insurance sector is now the fourth largest investment sector for Tech, with the emergence of organisations with significant disruptive potential such as FinTechs and InsurTechs.
In France, the creation of SLPs (Sociétés de libre partenariat) – through which France has adopted the international standards of the Anglo-Saxon Limited Partnership system – and the trend towards an increase in inflows, have led to a concentration within the sector and the emergence of mega-funds, with a desire by firms to move beyond French borders.
Ares & Co supports investment funds in their development, in particular via: