Hedge funds loans originator charters

 

hedge funds loans originator charters

Investor Leon Black, like many peers, has urged caution given high market valuations. But the Apollo Global Management CEO said his $163 billion firm is rapidly expanding one of its business lines: lending money.

"Credit in general is a huge, huge opportunity today," Black said last week at the Milken Institute Global Conference in Los Angeles, noting the diminished role of banks in providing loans.

A new paper from the Alternative Investment Management Association, a London-based hedge fund lobbyist, estimates that private debt funds—including hedge and private equity funds, among others—now manage about $440 billion globally, with $64 billion of new capital allocated to the sector last year alone, per Preqin data.

Hedge funds loans originator charters

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11-2-2016  · A group of hedge funds , convinced they have found the next Big Short, are looking to bet against bonds backed by subprime auto loans . Good luck finding a ...

Hedge funds using a global macro investing strategy take sizable positions in share, bond or currency markets in anticipation of global macroeconomic events in order ...

Investor Leon Black, like many peers, has urged caution given high market valuations. But the Apollo Global Management CEO said his $163 billion firm is rapidly expanding one of its business lines: lending money.

"Credit in general is a huge, huge opportunity today," Black said last week at the Milken Institute Global Conference in Los Angeles, noting the diminished role of banks in providing loans.

A new paper from the Alternative Investment Management Association, a London-based hedge fund lobbyist, estimates that private debt funds—including hedge and private equity funds, among others—now manage about $440 billion globally, with $64 billion of new capital allocated to the sector last year alone, per Preqin data.

In early 2008, Jim Gee hit an impasse. Over the previous five years, Gee had been expanding Trinity Communications, a small cable-TV company in Marion County, Tenn., that he founded in 2003. With startup costs of nearly $3 million, Gee had used personal funds to get the business rolling, laying fiber optic cables across two rural towns and attracting new subscribers. By 2008 he had 600 customers and 6 employees, but Gee couldn't find additional funds to service new towns and sign new subscribers.

It's clearly not easy for small companies to get traditional bank loans these days. Major financial institutions have written down over $400 billion in bad investments over the past year and banks are scrambling to raise depleted coffers. That usually hurts small companies more than their larger counterparts. "It's not like a big company that can just sit on its hands for three years and wait the cycle out," says David Grin, co-founder and portfolio manager at the $1.8 billion fund Laurus Valens in New York. "There are a significant amount of companies out there with virtually nowhere to go."

With a new cadre of hedge funds (BusinessWeek.com, 10/31/05) and alternative lenders looking to fill that void, small companies, public and private, are competing for available funds. "Our members' phones are ringing off the hook, says Andrej Suskavcevic, CEO of the Commercial Finance Assn., a trade association of roughly 300 asset-based lenders. The calls started pouring in during the fourth quarter of last year, says Suskavcevic, when companies started realizing they'd have to turn to new lending sources to survive.

Overwhelming institutional demand, hedge funds with a double-digit share of the market’s assets, trendy approaches to underwriting, a nascent securitisation market – these are the forces shaping the peer-to-peer lending business in the US, and some observers are starting to worry. Kris Devasabai reports

For many people, peer-to-peer (P2P) lending probably conjures up images of amateur investors, bright-eyed millennials, and mom-and-pop savers wiring money directly to entrepreneurial individuals and small businesses – a revolution from which banks and other institutions are frozen out.

Many people are wrong. In the US at least, institutional capital is flooding into the P2P market, bringing with it concepts such as securitisation, loan trading, high-speed algorithms and bulk deals, as well as fears that all of this might be happening too quickly for the platforms at its heart.