Preqin Markets in Focus: Alternative Assets in the Americas Preqin Markets in Focus: Alternative Assets in the Americas Acknowledgements
Total Page：16
File Type：pdf, Size：1020Kb
Preqin Markets in Focus: Alternative Assets in the Americas Preqin Markets in Focus: Alternative Assets in the Americas Acknowledgements Executive Editors Walker Jones Charlie McGrath Jamie Fisher Sam Monfared Richard Gifford Megan Harris In-House Contributors Alejandro Hill Jared Bochner Drew Lenz Cat Hall Chase Mahar Kayla Hujber Hayden O’Bryan Cameron Joyce Michael Phua Dave Lowery Ethan Tannenbaum Danny McCance Sebastian Vallone Charlotte Mullen Jordan Poulter External Contributors Milly Rochow Jared Broadbent, Alter Domus Logan Scales Philippe Camu, Goldman Sachs Tim Short Anthony DeCandido, RSM US LLP Hannah Washbourne Greg Durst, Institutional Limited Partners Association Craig Golinowski, Carbon Infrastructure Partners Data Support Jared Gross, J.P. Morgan Asset Management Quinlan Abel Bill Kelly, CAIA Association Justin Bartzsch Alex Kotsopoulos, RSM Canada Ross Coapman Scott L. Lebovitz, Goldman Sachs Matthew Davis Kate McRoskey, First Republic Bank Adam Jackson Dave Moyes, Carbon Infrastructure Partners Rebecca Johnson Pulkit Sharma, J.P. Morgan Asset Management Important Notice, Please Read All rights reserved. The entire contents of Preqin Markets in Focus: Alternative Assets in the Americas are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, unless expressly agreed with Preqin Ltd. The information presented in Preqin Markets in Focus: Alternative Assets in the Americas is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then the reader should seek an independent financial advisor and hereby agrees that he/she will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following his/her use of Preqin Markets in Focus: Alternative Assets in the Americas. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confirm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Markets in Focus: Alternative Assets in the Americas are accurate, reliable, up to date, or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Markets in Focus: Alternative Assets in the Americas or for any expense or other loss alleged to have arisen in any way with a reader’s use of this publication. Data contained within the Preqin Markets in Focus: Alternative Assets in the Americas was sourced from Preqin Pro, unless otherwise stated, as of January 2021 and represents the most up-to-date data as of that date. 2 Contents 4 CEO Foreword – Mark O'Hare, Preqin 34 North American Private Debt 7 Executive Summary 40 Rise in Capital Consolidation and Infrastructure Allocation 9 In Numbers: Alternative Assets in the Americas 43 Why Carbon Capture and Storage Infrastructure Offers a Path to Net Zero – 10 Core Alternatives Deliver What Public Markets Dave Moyes & Craig Golinowski, Cannot – Pulkit Sharma & Jared Gross, Carbon Infrastructure Partners J.P. Morgan Asset Management 45 Investors: AFPs’ Growing Appetite for 14 How COVID Reshaped the Infrastructure International Private Equity Market – Philippe Camu & Scott L. Lebovitz, Goldman Sachs 50 A Ray of Light for North American Real Estate 17 Why PPPs Are the Intersection between ESG 56 US Infrastructure Ready to Take off and Infrastructure – Alex Kotsopoulos, RSM 62 In Focus: Manager Success at Home and Canada & Anthony DeCandido, RSM US LLP Overseas 19 North American Private Equity 65 Promising Prospects for Natural Resources in 24 Why Venture Capital Is Thriving beyond Silicon the Americas Valley – Kate McRoskey, First Republic Bank 71 Hedge Funds in North America 25 Latin American Private Equity 78 ESG Advances in the US 29 Timely Data and More Outsourcing Key for 80 Canada in Focus: Swensen’s Lasting Legacy Fund Admins – Jared Broadbent, Alter Domus 31 Latin American Venture Capital: A Force for Good 3 Preqin Markets in Focus: Alternative Assets in the Americas CEO Foreword Welcome to the newest addition to the Preqin report family: Markets in Focus: Alternative Assets in the Americas. North America is the birthplace of alternatives and the biggest market, but for this Mark O'Hare report we have extended coverage to include Latin CEO America, a challenging but increasingly interesting market that’s home to a growing cadre of investors with an appetite for alternatives. Preqin It’s said that everything in America is larger than life. It’s true of its alternatives market, which has assets under management (AUM) of $4.82tn in private capital and $3.39tn in hedge funds, and more than As Alternative Assets continue to play an ever- 10k active investors and 8k active managers. It’s also greater role in investors’ portfolios; so too grows the true of the economic response to COVID, where the demand for reliable and powerful tools to monitor government has spent $3.2tn – more than the GDP progress and performance in the portfolio, and to of the UK, France, Italy, or India – and has a further evaluate and plan new investments. This calls for $1.6tn in the budget.1 President Biden is now pushing a seamless combination of the best data and the for a further $6tn of spending. best workflow tools; which is why we’re so delighted to welcome Colmore to the Preqin family; and to The strong fundamentals underpin a vibrant and offer these wider capabilities to Preqin’s customers competitive market that’s increasingly showing signs globally, and especially in the Americas. Please see of maturity. These include the ongoing consolidation page X for more on Colmore. of capital with larger managers and moves by big LPs Alternative assets will continue to grow and evolve. to trade quantity for depth in their GP relationships. Over the past 12 months we have continued to invest to deliver you – our network of over 170k global Innovation, which is exemplified by the booming alternative assets professionals – better data, tools, venture capital market, is at the heart of alternative and insights to help you discover new opportunities, assets’ success in North America, and fund benchmark your performance, and find top-tier managers will need innovative and more specialist industry partners. approaches to stand out in a crowded fundraising market. While GPs in the Americas have lagged In the past year alone, we: their European peers on environmental, social, • Acquired Colmore, a leading private markets and governance (ESG), the twin factors of a new technology, services, and administration regulatory regime and investor demands are leading business – a transaction that will help boost to rapid change. As in other regions, measurement, transparency in alternatives markets. reporting, transparency, and standardization are • Rolled out ESG Solutions to provide you with issues that will have to be resolved – a challenge critical visibility of GP-LP environmental, social, that Preqin is helping clients tackle with our ESG and governance factors at a firm, portfolio, and Solutions service. asset level, with more than 500k transparency metrics tracked. • Launched Company Intelligence, providing you 1 https://www.usaspending.gov/disaster/covid-19 4 with access to detailed profiles and searches across Preqin’s sponsor-backed company universe. • Launched Insights+ subscription service, delivering exclusive analytical content tailored towards providing actionable research for LPs, GPs and service providers • Continued to achieve data growth across our platform, with our investor profiles up 10% to more than 20k, our fund profiles up 17% to 133k, and our GP coverage up 12% to almost 47k profiles. As you have come to expect from Preqin, The Home of AlternativesTM, we will continue to invest heavily to ensure you have the most comprehensive view of the alternative assets industry. Thank you for your ongoing support, and happy investing. 5 FAIR PRIVATE EQUITY, MEET VALIDATED FEES YOUR CHALLENGE Private equity fees are complicated. This complexity limits their clarity. While GPs deliver great reporting, we know that due to your fi duciary duties to your stakeholders and increasing legislative and regulatory pressure, you’d like the option of third-party fee validation. A full forensic audit can often run away with money and is a one-off exercise. There is another way. OUR SOLUTION Our Fee Tracking and Validation Service is a simpler, more cost-effective way to get greater confi dence in your underlying fund charges. We review every LPA and Side Letter to understand We model expected vs. actual fees, your unique terms. and investigate / resolve any variances. We work off existing GP documentation and Using our proprietary scoring matrix, we deliver industry fee templates, providing a non-intrusive easy to understand reporting on individual funds validation service. and your cumulative portfolio. On a quarterly basis, we track your management Discrepancy?! Don’t worry. As a former LP, we can fees, carried interest and expenses. manage the delicate conversation with GPs to ensure that we have all the required data inputs. COLMORE IS THE WORLD LEADER IN THESE SERVICES, SUPPORTING SOME OF THE LARGEST LIMITED PARTNERS GLOBALLY Are you an ILPA Member? Colmore is exclusively offering ILPA members a 20% annual discount on recurring service fees. Executive Summary North America sits at the center of the alternative assets universe The Americas have always been a prime region for areas of focus. Infrastructure and private debt should alternative assets.