Does flexibility mean safety? The Rise and Rise of NAV
Does flexibility mean safety? The Rise and Rise of NAV
•09/01/2020•3 MinutesRecruiting has always been a relationship business, and there are few other industries that rely on tangible, long term relationships as the basis for long term growth like Fund Finance.
But understanding market movements is crucial in securing your future. Our founder, Rory Smith, has built an effective recruitment business on understanding market movements, and what he’s seen recently is a rise in flexible fund raising options, specifically via NAV facilities, in firms who have successfully navigated the unique pressures of credit access, corporate restructuring and investments this Summer.
Since March of this year the Fund Finance market has been remarkably resilient in the face of huge changes. We’ve seen steady, sustainable capital calls across the board and firms remain buoyant throughout. But flexibility in access to credit has become more important. What NAV gives you is options – and as we’ve seen this year many markets have reeled from COVID-19, but not so at Fund level. My discussions with Asset Managers over the last few weeks have been enormously positive and firms are seeking candidates with more and more NAV experience. With so many firms taking their hiring freezes off ice, we’re well set to support any client as they expand their flexible Fund Finance options.
In such a growth-orientated market, it’s important to have a recruitment partner who can be part of that growth.
How has the Fund Finance market remained so robust, and what’s next for your Fund Finance Team?
How has the Fund Finance market remained so robust, and what’s next for your Fund Finance Team?
•07/10/2020•3 MinutesThere has been, for good reason, a severe amount of nervousness across the investment and legal world since COVID ushered in a “New Normal”. However, Fund Finance remains robust expressly because of market fluctuations and the ability of Funds and Lenders to work beyond maturation or limits to their capital commitments.
Flexibility has always been a by-word for good recruitment, but asset and financial managers haven’t necessarily had flexibility on their side…until now. With morale rising, especially in core industry across the UK and other regions, firms need to prepare to take advantage of investment opportunities as they arise quickly.
For an example, as July has shown, there is a slow but definitive uptick in some core UK industries such as manufacturing, where demand is increasing and turnover is high. 89% of UK businesses were in operation at the end of June, projections are rising and PMI’s are neutral.
The future of Fund Finance is healthy, but it is changing.
With significant churn comes challenges, and Funds are already reacting to changes imposed by restrictions on investments by looking at the positives – NAV credit facilities are giving Lenders and Funds optimism and security, and finding specialists who understand the potentials and risks of basing credit extensions on the net asset value of a Fund’s portfolio is becoming increasingly important.
Funds and Lenders will need to familiarise themselves quickly to the specifics and nuances of NAV credit facilities and having dedicated and experience legal counsel will be vitally important in securing your short term health, and long term plans.
References:
Industry Conversation with Fund Finance Friday
Industry Conversation with Fund Finance Friday
•06/05/2020•2 MinutesOur founder Rory Smith was featured on the Cadwalader’s Fund Finance Friday: Industry Conversations today, together with a panel of experts, discussing the current state of affairs across Fund Finance, with Rory talking specifically about recruitment within this fast-stabilising arm of the financial and legal market.
Rory covered a breadth of topics – from traditional recruitment tactics in the age of COVID, to the differences in Legal and Banking representation and seniority of hires – across both US and UK markets.
You can watch the whole episode by following this link to Cadwalader’s Fund Finance Friday page, or simply watch the video below.
Where does the future of Fund Finance lie in a post-COVID world?
•05/08/2020•3 MinutesWe mentioned in our last article that European and British Financial markets have expressly focussed on short term continuity and hiring ahead of a rebound as the tonic for COVID’s ailments.
But as coronavirus spreads, and as entire governments enact protective measures beyond precedent, how specifically are US, EU and Asian Fund Financiers adapting to the threat of further outbreak, and how are recruiters adapting to the change?
Ultimately, the Fund Finance industry sits at the cusp between futures and stability, and uniquely it’s the flexibility offered via bespoke funding structures that will be a boon to some, if not most, investment vehicles.
But change, we think, will be more subtle than overt.
- We are seeing an increase in conversation around NAV facilities and the opportunity for more flexible refinancing, especially amongst non-bank lenders,
- Rather than defaults and panic, what we’ve noticed is a much more managed, calm and considered portfolio adjustments, and a much more overt understanding of long term changes and how to mitigate long term harm,
- Like lenders, Brickfield have had to react to market changes, be that a rise in hiring (albeit cautionary), or churn in some firms, and we are far more aware of some uneasiness in pushing for market entry in a still growing market.
What we’re seeing at Brickfield are clients overwhelmingly looking for Fund Finance professionals with a broad range of industry knowledge, candidates who understand traditional subscription line facilities and NAV and Hybrid Facilities. In this uncertain time, we’re finding that growth hinges on being able to prepare for every eventuality. Candidates who understand the full Fund Finance lifecycle, from fund raising through to maturity, are in higher demand.
Fund Finance, Coronavirus, and you – how you can secure your workforce against the coming storm.
Fund Finance, Coronavirus, and you – how you can secure your workforce against the coming storm.
•04/14/2020•4 MinutesCoronavirus has changed everything, so what plans and strategies can you put in place to mitigate some of the harm and look to a bright future?
COVID-19 is looking at putting the huge gains in capital raising at the beginning of 2020 on ice, and however much industry insiders extol the virtues of a banking and legal system better prepared to weather a recession, 2020 is set to be a tough year for Funds and Investors.
But Funds are weathering the storm in remarkably good health.
Rapid shifts in working culture, not to mention whole industries spending weeks, if not months closed or at reduced working levels is only going to increase the need for short term asset support and access to speedy credit, and you can determine how markets will adapt to the coming storm by simply referring to the very first point of action in the European Banking Authorities statement on COVID-19 released in March, “Banks should focus on their core operations and ensure continuity”.
Retention Retention Retention. This is the name of the game, and how we too at Brickfield will act and react in the coming months.
But we also know any hiring freezes will be short lived as flexibility increases around capital call credit access and investment in the long term.
Even during a crisis, firms are hiring and candidates are being on-boarded, but for everyone else looking forward, now is the perfect time to reach out to expert Fund Financiers and Legal Counsel.
Getting your team in place for the inevitable swing back to worldwide positive investment has been a focus of ours and will undoubtedly continue to be for the next few months with some of our key clients.
It would be foolish to think funding and Fund Finance specifically will exit the rise of COVID unscathed, but we are in a formidably strong position compared to 2008. Look to your people as your security and future – a firm is nothing without its people, and prepare for an unprecedented summer!
Fund Finance Report 2019 now available for free.
Fund Finance Report 2019 now available for free.
•11/03/2019•1 MinutesThe report covers compensation ranges for MD’s (non-group head), directors, VP’s, associates and analysts by identifying the base salary and bonuses of the lowest and highest paid individuals in the market. The purpose of the report is for fund finance bankers and banks to benchmark themselves among their peers. It also highlights team sizes and the markets appetite for hiring.
