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Assets in listed alternatives on the London and Amsterdam stock exchanges total USD73bn

There are USD73bn of assets in listed alternatives on the London and Amsterdam stock exchange, according to Dexion Capital, the alternatives investment bank.

The sector has added, in the last 12 months alone, a total of USD18bn. This breaks down as USD12.6bn through 22 IPOs and a further USD5.4bn from follow-on fundraises.
 
Half the IPOs have been credit and property funds, raising USD1.38bn and USD2.6bn respectively.
 
Within credit, alternative sources of financing has been an important theme and, within property, alternative property sectors such as student accommodation or care homes have registered investor interest.
 
Head of research Tom Skinner says: “The highly regulated environment which we have seen post-crisis and the constraints that this has brought to banks, has led to a number of investment companies opportunistically launching to provide alternative sources of finance to borrowers or to work alongside the banks to maintain their lending activities. Indeed, almost GBP1bn has been raised within the alternative financing sub-sector in the last 12 months. We believe that there is further scope for the listed credit investment fund universe to grow, especially for illiquid strategies where there are premium returns available and gaining exposure to these strategies can be a challenge. In a changing world, investors need to keep their investment universes refreshed and wide. This is why ‘alternatives’ should be considered.”
 
Ana Haurie, executive group managing director for Dexion Capital, says: "Technology and changing demographics have directly impacted alternative financing and property funds respectively, which have evolved their investment cases to take advantage of the opportunities they provide. All are about finding solutions to supply shortages and lack of adequate provision at a clearing price: SME loans, property loans, consumer loans, GP surgeries, student housing and residential.
 
"SMEs are the backbone of the UK economy and one of today’s credit opportunities is about funding the companies, by either getting the banks to lend or disintermediating them through new lending channels.”

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