Archive for the ‘Uncategorized’ Category

Mercury adds US secondaries advisory exec

Posted by Muhammad Ibrahim Masudi

The adviser and placement agent sees a growing opportunity in the US lower middle market, particularly in preferred equity.

Picture: Vik Salh

Mercury Capital Advisors has brought a new hire over from the West Coast to join its New York secondaries advisory business.

The adviser and placement agent has appointed Vik Salh vice president of secondaries, according to his LinkedIn profile. Salh joins from Davis, California-headquartered advisory shop Upwelling Capital, where he spent six years.

Mercury’s London-headquartered head of secondaries Sabina Sammartino told Secondaries Investor that the firm will make more hires in the US in response to an uptick in lower mid-market deal flow, particularly in the preferred equity space. “Given where we are in the market, in terms of volatility and the potential gap in pricing expectations between buyers and sellers, preferred equity is an elegant way of bridging that gap,” she said. “It’s something we are very much aware of and think is going to be a good opportunity in the coming months.”

Earlier this week, Secondaries Investor reported that Mercury advised on a preferred equity deal centred on European special situations manager Springwater Capital. Morningside Capital Management and LSV Advisors provided capital to help the GP take advantage of opportunities brought about by market dislocation.

Volatile public markets are making it more difficult to value private assets, leading to greater risk aversion among buyers and an increase in the number of secondaries deals stalling and being repriced, Secondaries Investor reported.

Mercury Capital was acquired by Bahrain-headquartered investment firm Investcorp in 2019. In addition to its secondaries business, it has been a regular placement agent for GPs such as Coller Capital and Asia-focused growth investor Anchor Equity Partners.

Source: Secondaries Investor

Springwater Capital partners with Morningside Capital Management and LSV Advisors in a structured solution of a European portfolio of alternative assets.

Posted by Muhammad Ibrahim Masudi

Springwater, a leading pan-European special situations investment firm, received a preferred equity investment in a portfolio of European private equity assets with a value of over €100 million. Fresh capital raised will be deployed to make new investments in Europe, one of which has already been successfully completed.  

Morningside Capital Management, a GP-led secondary specialist firm run by former CPP Investments professionals, and LSV Advisors, a New York-based special situations secondary fund manager, partnered on the investment. This transaction will enable Springwater to continue to build out its platform and to take advantage of the current market conditions to provide sophisticated capital solutions to companies with high growth potential whilst also broadening its investor base. 

Mercury Capital Advisors, a leading private fund placement and secondary advisory firm, served as exclusive financial advisor to Springwater on the transaction.

Martin Gruschka, Founding Partner at Springwater, said: “Given the strength of our current pipeline, this transaction enables us to further invest in high quality opportunities whilst simultaneously expanding our LP base. Morningside and LSV are both very successful platforms offering creative and customized solutions and we look forward to continuing to build the relationship.”

“We are excited to support the Springwater team on its most recent investment through a highly creative financing structure,” said Henry Zhang, Founding Partner of Morningside. “With this structure in place, we look forward to expanding our partnership to pursue future investment opportunities.”

Sabina Sammartino, Head of Secondary Advisory at Mercury Capital Advisors, said: “We are delighted to have advised Springwater on this innovative transaction, leveraging the strength of their existing portfolio to raise the additional fresh capital they require to invest in new and exciting opportunities whilst also offering superior risk-adjusted returns to investors. We are increasingly seeing managers get creative in their pursuit of capital and this is a prime example where it works for all parties.”

About Springwater Capital

Springwater is a leading pan-European special situations investment firm headquartered in Switzerland. Established in 2002, Springwater provides sophisticated capital solutions to companies with high growth potential across Europe. For further information, visit www.springwatercapital.ch.

About Mercury Capital Advisors

Mercury is a leading global private fund placement and secondary advisory firm founded in 2009 as a spinoff from the Merrill Lynch Private Equity Funds Group. With offices in New York, London, Dubai, Tokyo, New Delhi, and Singapore, the firm maintains strong relationships with a broad range of institutional investors. Mercury’s secondary advisory practice provides comprehensive solutions to managers and owners of alternative asset portfolios seeking to leverage the secondary market to achieve their objectives. For further information, visit www.mercurycapitaladvisors.com.

About Morningside Capital Management

Morningside is a private equity investment firm based in Toronto, Canada, with an exclusive focus on GP-led secondary solutions.  Morningside manages and advises on over $300 million in assets on behalf of institutional and high net worth clients. For further information, visit www.morningsidemgmt.com/.

About LSV Advisors

LSV is a New York-based special situations secondary fund manager with approximately $1.5 billion in assets and commitments on behalf of institutional and family office clients worldwide.  For further information, visit www.lsvfinancial.com.

Infrastructure Managers Rake in $124B for
New Fundraising Record

Posted by Muhammad Ibrahim Masudi

Money poured into infrastructure funds at a record pace last year, powered by factors such as a post-pandemic rebound, a range of potential risk and return options and a wide array of investment targets – crumbling highways and bridges, 5G cell towers, data centers, renewable energy plants and battery storage installations.

EQT’s fifth infrastructure fund was by far the biggest to close last year, raising $18 billion, while Copenhagen Infrastructure Partners was next with $8.4 billion for its fourth fund. And the fundraising rush has continued in early 2022 with Stonepeak Infrastructure Partners closing its fourth North America fund at $14 billion earlier this month and Partners Group this week closing its third infrastructure fund at $6.4 billion, which it will invest alongside another $2.1 billion in separate accounts and other vehicles.

And with more and bigger managers becoming increasingly active in the space, indications are that this year will be just as strong for the asset class.

Last year had 117 infrastructure funds close overall with $124 billion in assets, according to new data from Preqin. While the fund count was down from 143 in 2020 and 147 in 2019, the total dollars raised was an
easy record, up from $113 billion in 2020 and $118 billion in 2019, per Preqin.

The average fund size was up as well, continuing a multi-year trend of larger and larger infrastructure funds. The average such fund is now about $1.5 billion, up from just $600 million in 2016, according to Campbell Lutyens data.

Some of the inflows last year were held over from the lockdown interrupted year of 2020. “Infrastructure had a strong bounce-back year after Covid impacted fund closings in 2020 and pushed out allocations to
2021,” said Eugene Park, principal at Mercury Capital Advisors.

Several other managers had large closes beyond EQT and Copenhagen’s funds, including Macquarie Infrastructure Partners, which closed its sixth Americas fund at $6.9 billion, according to Preqin data. In addition, Wren House raised $5 billion, Manulife closed its second infrastructure fund at $4.7 billion in November, and Ares Management raised $2.2 billion for its Ares Climate Infrastructure Partners Fund.
Other big managers raising big money in 2021 included Blakstone Group’s open-end infrastructure fund, which brought in $6.7 billion in the fourth quarter, said Jon Gray, the manager’s president and chief operating officer, on an earnings call in late January. And Brookfield Asset Management held a $7 billion first close of its energy transition fund in July, on its way to a target of more than double that figure.
And early this year, Apollo Global Management announced a close for its second infrastructure equity fund at more than $2.5 billion.

Various managers are still in the market with large infrastructure funds beyond Brookfield. KKR is targeting $12 billion for its fifth infrastructure fund, while I Squared Capital is aiming for the same amount for its third fund.

The longstanding low-interest-rate environment has been a big driver of money into infrastructure, according to Gordon Bajnai, head of global infrastructure at Campbell Lutyens. “A lot of new money is coming into infrastructure allocations, and most of that new money is going to high single-digit-yielding, downside-protected, long-term core infrastructure,” he said. “That’s because investors are trying
to replace negative-yielding fixed income investments with core infrastructure.”

One of the biggest areas of interest for infrastructure investors last year was the transition to a low-carbon economy – with more deals targeting renewable power, battery storage and other sustainability projects, broadly referred to as “energy transition” investments.

“One of the dominant themes last year was around renewables and clean energy,” said Christian Busken, senior vice president and director of real assets at Fund Evaluation Group. “Anything with that label attached to it was getting a fair amount of attention.”

Such investments grew thanks to a virtuous circle of increased investor demand and a growing opportunity set, said Iftikhar Ahmed, partner at Aon’s investment consulting unit. That’s clear from the success of funds from the likes of Brookfield and Ares, though many infrastructure funds now include an energy transition sleeve as well. “It’s a trend that’s not reversing anytime soon,” he said. “We expect growth in dedicated sustainable/energy transition funds and an increased focus on sustainable/energy transition deals by otherwise diversified funds.”

And Bajnai cites recent studies that forecast hundreds of billions of dollars of climate-related infrastructure investment in the near term.

“That’s a massive increase – more than doubling the speed of deployment in a few years,” he said.
Indeed, Brookfield had planned to close its energy transition fund at $12.5 billion, but later upped the target to $15 billion, CEO Bruce Flatt said at a conference in December. That $15 billion “could have been more,” he added.

It helps that managers can create a wide array of investment strategies from such assets. “Energy transition is a space that is growing so fast that you can easily allocate to different risk/return strategies within the asset class,” Bajnai said. That can range from a low-risk product built around proven technologies targeting a 5% return to something that’s “more technologically risky” with a 20% return target, he pointed out.

Another area seeing attention from both investors and managers is digital infrastructure, such as cell towers and data centers. “We’ve seen various groups raising capital around that theme, and I think
those areas are going to remain on everybody’s radar,” Busken said.

A Campbell Lutyens survey last fall of institutional investors found more than 50% of respondents expressing ongoing interest in energy transition investments, while 50% say they want more digital infrastructure.

Inflation could be another driver of flows into infrastructure investments, which often are seen as a hedge against inflation, “due to the nature of long-term contracts with inflation-linkage and the essentiality of the assets to economic activity,” Park noted. While it’s not entirely clear if infrastructure actually does provide protection from inflation, the belief is there, and as Park put it, “We expect inflationary concerns to continue driving allocations to this asset class.”

And the $1 trillion infrastructure bill that President Biden signed into law last November might also have only a limited impact on the space, some experts believe. Such spending programs tend to come with “long procurement processes,” Ahmed noted.

But that’s unlikely to be a drag on the continued growth of infrastructure investing overall. “We expect the overall fundraising to remain strong in 2022, if not even stronger,” Ahmed said.

Mercury Capital Advisors Boosts its US Origination and Distribution Capabilities

Posted by Muhammad Ibrahim Masudi
(Picture – James Howe (left), Michael Dunham (right))

Mercury Capital Advisors announced today that it has added James Howe and Michael Dunham as Partners to further enhance its origination and distribution capabilities. Howe and Dunham are based out of Mercury’s New York office. Mr. Howe will be leading Mercury’s US Origination efforts, while Mr. Dunham joins as a Partner on the US Distribution Team.

“We are thrilled to welcome James and Michael to the Firm. We continue to see a strong momentum of deal flow in 2022 across all our verticals: fund placements, directs, and secondary advisory transactions. With decades of experience in private markets, we are confident that James and Michael will contribute significantly to the next phase of our growth,” said John Franklin and Enrique Cuan, Managing Partners at Mercury.

Mr. Howe joins Mercury from Stanwich Advisors where he managed Origination, Distribution and Project Management functions. He started his financial industry career at UBS, where he was one of the founding members of the UBS Private Equity Funds group and managed placement teams. After a 14-year tenure at UBS, he joined Strategic Value Partners in a fundraising capacity for its private equity structured vehicles and hedge fund products. Mr. Howe then spent 9 years at NovaFund Advisors, a private equity fund advisory and placement firm that he established and built.

Mr. Dunham also brings a tenured placement expertise to the Firm after spending 16 years as a Partner at Pinnacle Trust Partners, an independent placement and advisory firm for alternative investments. Prior to joining Pinnacle, Mr. Dunham was a Senior Vice President at Trust Company of the West (TCW), a $265 billion asset management firm based in Los Angeles, CA, where he was responsible for marketing all investment products to insurance companies and other financial institutions. Earlier in his career, Mr. Dunham worked in Institutional Sales at JP Morgan Securities and UBS Securities in New York.

These appointments come on the back of a very strong year for Mercury in 2021, having advised on several fund closings including those of American Landmark, Ocean Link, MML, Valor Equity Partners, Gaw Capital Partners, Blue Torch Capital and Investcorp. Mercury continues to expand its global placement capabilities; it has currently local distribution presence in New York, London, Dubai, Singapore, Tokyo and Los Angeles covering institutions and family offices in North America, Europe, Asia and the Gulf.

About Mercury Capital Advisors

Mercury Capital Advisors is a leading global private fund and investment advisory firm. Founded in 2009 as a spinoff from the Merrill Lynch Private Funds Group, the firm assists general partners and limited partners in fundraising and secondary advisory, co-investment and direct deal placement. The firm specializes in alternative assets including private equity, real estate, infrastructure, credit, venture capital, secondaries and special situations investments. Mercury has advised on over 100 fundraisings and closed over $100 billion in fund commitments since its inception in 2009.

With offices in New York, London, Singapore, Tokyo and New Delhi, the firm maintains strong relationships with a broad range of the world’s pre-eminent institutional investors, including sovereign wealth funds, corporate and public pension plans, insurance companies, endowments, family offices, foundations, secondary funds, funds of funds and consultants.

Mercury Capital Advisors is a 100% owned subsidiary of Investcorp, a global investment manager specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. As of June 30, 2021, Investcorp Group had US $37.6 billion in total AUM, including assets managed by third-party managers, and employed over 430 people from 45 nationalities globally across its offices in 12 countries spanning the US, Europe, GCC and Asia.

Mercury Capital Advisors Adds Masashi Hirose and Eugene Park to Growing Team

Posted by Muhammad Ibrahim Masudi
(Picture – Masashi Hirose (left), Eugene Park (right))

Mercury Capital Advisors announced today that it has added Masashi Hirose as Partner and Eugene Park as Principal to boost distribution and project management efforts for the firm, respectively. Hirose is based in Tokyo while Park has joined Mercury’s New York office.

“We are excited to bring Masashi and Eugene on board to leverage their relationships and fundraising experience, and to strengthen our growing team. These hires will expand our capacity to manage the very strong deal flow that we experienced in 2021 across our fund placements, directs and secondary advisory transactions,” said John Franklin and Enrique Cuan, Managing Partners at Mercury.

Mr. Hirose joins Mercury from Teneo Partners, where he served as Director and led major capital raising mandates across real estate, infrastructure, private equity, direct loans, hedge funds and venture capital. Prior to Teneo, Mr. Hirose spent eight years at AIG Investments (AIG Japan Securities), where he served as Managing Director, Head of Marketing and Client Services and Product Specialist of Alternative Products. While at AIG, he helped grow the firm’s hedge fund assets from scratch to $1.3 billion. Mr. Hirose has also held senior-level roles at Pinebridge Investments (ex. AIG Investments), HVB Capital Asia Limited, Barclays and Paribas Capital.

Mr. Park also brings a robust industry background to Mercury, joining the firm after more than nine years at First Avenue Partners. As a Director in Project Management, Mr. Park forged deep relationships with GPs to develop and refine their marketing strategy, conducted due diligence, and helped amplify sales efforts across the institutional spectrum. He also completed significant capital raises across a variety of fund types and direct deals in key asset classes including infrastructure, private credit, and private equity. Prior to First Avenue Partners, Mr. Park was an equity research analyst covering healthcare services at BB&T Capital Markets and Madison Williams & Company.

These appointments continue to fuel Mercury’s success in 2021, as the firm hired senior distribution leaders – Matthew Haimes, Jill Cohen, Jennifer Tunney and Sara Modalal –  and advised on several fund closings year to date, including those of American Landmark, Ocean Link, MML, Valor Equity Partners, Gaw Capital Partners, Blue Torch Capital and Investcorp.

About Mercury Capital Advisors

Mercury Capital Advisors is a leading global private fund and investment advisory firm. Founded in 2009 as a spinoff from the Merrill Lynch Private Funds Group, the firm assists general partners and limited partners in fundraising and secondary advisory, co-investment and direct deal placement. The firm specializes in alternative assets including private equity, real estate, infrastructure, credit, venture capital, secondaries and special situations investments. Mercury has advised on over 100 fundraisings and closed over $100 billion in fund commitments since its inception in 2009.

With offices in New York, London, Singapore, Tokyo and New Delhi, the firm maintains strong relationships with a broad range of the world’s pre-eminent institutional investors, including sovereign wealth funds, corporate and public pension plans, insurance companies, endowments, family offices, foundations, secondary funds, funds of funds and consultants.

Mercury Capital Advisors is a 100% owned subsidiary of Investcorp, a global investment manager specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. As of June 30, 2021, Investcorp Group had US $37.6 billion in total AUM, including assets managed by third-party managers, and employed over 430 people from 45 nationalities globally across its offices in 12 countries spanning the US, Europe, GCC and Asia.

Gaw Capital Partners Takes Top Spot in APAC Fund Manager Ranking by PERE

Posted by SANCHIT TANEJA

September 1, 2021, Hong Kong  Gaw Capital Partners ranked first in PERE’s APAC Fund Manager Guide, a ranking based on capital raised over a five-year period, which shows the top 50 fund managers in the APAC region. As announced by PERE, Gaw Capital Partners has raised equity of US$8.6 billion and commands assets of over US$25.6 billion in the APAC region over the past five years. Since 2005, Gaw Capital has commanded assets of USD$30.7 billion under management globally as of Q1 2021.

Gaw Capital Partners successfully closed two investment vehicles totaling US$902 million in commitments. The first vehicle will focus primarily on real estate opportunities across sectors and markets in Asia. The second vehicle seeks to invest in education platforms in major Asian cities with strong structural tailwinds supporting growth in demand for premium international or bilingual education. In addition, Gaw Capital Partners successfully closed the fundraising for its internet data center (IDC) platform, which targets to invest in a portfolio of projects in partnership with IDC developers and operators in Asia, bringing the total equity raised to over US$1.3 billion in 2020. Recently, Gaw Capital Partners also completed the final close of Gaw Growth Equity Fund I at US$430 million to invest in proptech and real estate-related operating companies that are high growth and highly scalable with a primary geographical focus on Pan-Asia.

Goodwin Gaw, Chairman & Managing Principal of Gaw Capital Partners, said, “We are honored to receive this recognition from PERE, which is a reflection of our investors ongoing support, enabling us to succeed in fund raising, fund management and complete our creative value-add to our diverse range of assets throughout the Asia Pacific region. With a solid platform and dedicated team, we will continue to deliver excellent services and maximize returns for our investors.”

Christina Gaw, Managing Principal, Global Head of Capital Markets and Co-Chair of Alternative Investments at Gaw Capital Partners, said, “We are thrilled to be recognized by PERE as one of the best real estate private equity fund managers. The challenge of the pandemic certainly created more hurdles for managers to conduct fundraising. We would like to thank our investors for their ongoing trust in our capability in deal sourcing and dedicated asset management – it is thoroughly appreciated. We would also like to express our sincere appreciation to PERE magazine for their recognition, and most importantly, sincere thanks to our professional teams for their dedication and boundless hard work.”

PERE Magazine is one of the most reliable publications in the private equity real estate industry. The ranking is based on the amount of private real estate direct investment capital raised by firms between 1 January 2016 until 31 March 2021 in the APAC region.

About Gaw Capital Partners

Gaw Capital Partners is a uniquely positioned private equity fund management company focusing on real estate markets in Asia Pacific and other high barrier-to-entry markets globally.

Specializing in adding strategic value to under-utilized real estate through redesign and repositioning, Gaw Capital runs an integrated business model with its own in-house asset management operating platforms in commercial, hospitality, property development, logistics, IDC and Education. The firm’s investments span the entire spectrum of real estate sectors, including residential development, offices, retail malls, serviced apartments, hotels, logistics warehouses and IDC projects.

Gaw Capital has raised six commingled funds targeting the Greater China and APAC regions since 2005. The firm also manages value-add/opportunistic funds in Vietnam and the US, a Pan-Asia hospitality fund, a European hospitality fund, a Growth Equity Fund and also provides services for separate account direct investments globally.

Since 2005, Gaw Capital has commanded assets of USD$30.7 billion under management as of Q1 2021.

Source: Gaw Capital Partners

Mercury Capital Advisors Appoints Michael Ricciardi as Chairman Emeritus

Posted by Muhammad Ibrahim Masudi

Mercury Capital Advisors (“Mercury”), among the world’s elite global private fund placement and advisory firms, today announced that it has appointed Michael Ricciardi, Chief Executive Officer and Co-founder of the Firm as Chairman Emeritus. In his new role, Mr. Ricciardi will focus on business development and sourcing new client mandates.

Mr. Ricciardi founded Mercury Capital Advisors in 2009 along with two of his partners as a spinoff from the Merrill Lynch Private Equity Funds Group. Since its inception and under his leadership, Mercury has completed more than 125 fundraising, secondary advisory, co-investment and direct deal placements across multiple alternative asset classes, closed over $100bn in fund commitments, and became a prominent global placement and advisory firm.

Mr. Ricciardi said: “I look forward to the next phase in my career with great anticipation and excitement. I am enthusiastic about contributing to Mercury’s growth as it continues to deliver exceptional fundraising and advisory solutions to our clients.”

Mr. Ricciardi will retire from the executive management and operations of the Firm to focus on his new role, while the day-to-day management will be handled by the Firm’s Managing Partners John Franklin and Enrique Cuan.

Mr. Franklin and Mr. Cuan, commenting on Mr. Ricciardi’s transition, said: “The Firm has greatly benefitted from Mr. Ricciardi’s passion for helping clients grow their franchises and we look forward to continuing to leverage his network to develop new opportunities and relationships for the Firm in the future.”

This announcement comes as the Firm posted very strong first half results on the back of advising on several fund closings year to date, including those of Ocean Link, MML, Valor, Gaw, Blue Torch and Investcorp. Building upon this momentum, last week the Firm announced that it has hired four senior distribution professionals. In addition to these senior hires, it also strengthened its team by adding eight other staff in recent months across different functions, including distribution, administration and project management.

About Mercury Capital Advisors:

Mercury Capital Advisors is a leading global private fund and investment advisory firm. Founded in 2009 as a spinoff from the Merrill Lynch Private Funds Group, the firm assists general partners and limited partners in fundraising and secondary advisory, co-investment and direct deal placement. The firm specializes in alternative assets including private equity, real estate, infrastructure, credit, venture capital, secondaries and special situations investments. Mercury has advised on over 100 fundraisings and closed over $100bn in fund commitments since its inception in 2009.

With offices in New York, London, Singapore, Tokyo and New Delhi, the firm maintains strong relationships with a broad range of the world’s pre-eminent institutional investors, including sovereign wealth funds, corporate and public pension plans, insurance companies, endowments, family offices, foundations, secondary funds, funds of funds and consultants.

Mercury Capital Advisors is a 100% owned subsidiary of Investcorp, a global investment manager specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. As of March 31, 2021, Investcorp Group had US $35.4 billion in total AUM, including assets managed by third-party managers, and employed over 430 people from 45 nationalities globally across its offices in 12 countries spanning the US, Europe, GCC and Asia.

Source: BusinessWire

Mercury Capital Advisors Announces Four Senior Hires for Distribution Team

Posted by Muhammad Ibrahim Masudi

Mercury Capital Advisors today announced that it has added four senior professionals to amplify distribution efforts for the firm.

Matthew Haimes, based in London, Jill Cohen and Jennifer Tunney, both based in New York, have joined the firm as Partners, while Sara Modalal, based in Dubai, has joined as Principal. All four hires joined in Spring 2021.

“These four new team members bring decades of invaluable industry experience across institutional asset raising, investor relations and client solutions. We are excited to see the value Matt, Jill, Jen and Sara will add as Mercury continues its commitment to excellence and to our clients,” said John Franklin and Enrique Cuan, Managing Partners at Mercury.

Prior to joining Mercury, Mr. Haimes was Global Head of Investor Partners at Safanad, a $2bn PE and RE investment firm, and held a similar position at Quilvest. He previously served as Head of European Consumer Groups in Corporate Finance at both Morgan Stanley and Deutsche Bank. Mr. Haimes also managed the group at JP Morgan’s Private Bank that oversaw relationships with both single family offices and financial sponsors in London, and ran UHNW private banking for the UK and Nordics at Credit Suisse. 

Ms. Cohen was previously Senior Managing Director at Avenue Capital Group, a $9B investment management firm specializing in credit, special situations and distressed investments. She also served as Managing Director at Pinnacle Trust Partners, an independent boutique placement agent for alternative investments. Other prior positions include Director of Institutional Investments and Investor Relations at Salient Partners and Head of Capital Introduction for the Americas at Citigroup.

Before Mercury, Ms. Tunney was Managing Director in Private Markets Business Development at The Rohatyn Group, a $5bn+ emerging markets focused asset manager encompassing private equity, infrastructure, real assets and private credit. She has more than twenty years of investment banking experience after starting her career at JP Morgan and, during her time there, focused on credit, interest rates and commodity markets.

Ms. Modalal previously worked in the Dubai office of Principal Global Investors – a $550B+ global asset management firm  – where she managed institutional sales for the Middle East and Africa region. Prior to that, Ms. Modalal spent five years at Deutsche Bank Asset Management in Frankfurt, Germany, where she was part of the Global Client Group, and dedicated her time focusing on German corporates and multinational clients.

These appointments continue to fuel Mercury’s momentum in 2021 as the firm posted very strong first half results on the back of advising on several fund closings year to date.

About Mercury Capital Advisors

Mercury Capital Advisors is a leading global private fund and investment advisory firm. Founded in 2009 as a spinoff from the Merrill Lynch Private Funds Group, the firm assists general partners and limited partners in fundraising and secondary advisory, co-investment and direct deal placement. The firm specializes in alternative assets including private equity, real estate, infrastructure, credit, venture capital, secondaries and special situations investments. Mercury has advised on over 100 fundraisings and closed over $100bn in fund commitments since its inception in 2009.

With offices in New York, London, Singapore, Tokyo and New Delhi, the firm maintains strong relationships with a broad range of the world’s pre-eminent institutional investors, including sovereign wealth funds, corporate and public pension plans, insurance companies, endowments, family offices, foundations, secondary funds, funds of funds and consultants.

Mercury Capital Advisors is a 100% owned subsidiary of Investcorp, a global investment manager specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. As of March 31, 2021, Investcorp Group had US $35.4 billion in total AUM, including assets managed by third-party managers, and employed over 430 people from 45 nationalities globally across its offices in 12 countries spanning the US, Europe, GCC and Asia.

10 Biggest Trends Shaping the Next 3 Decades, According to Big Investors

Posted by SANCHIT TANEJA

Institutional investors and family offices in a recent survey cite digitization, aging population and climate change as the most important trends that will shape the global economic landscape in the coming decades, and are investing across these trends through both private and public markets.

Investcorp, a provider and manager of alternative investment products, conducted the survey in partnership with Mercury Capital Advisors, an institutional capital raising and investment advisory firm; IMD Business School; and Banque Pâris Bertrand, a Swiss-regulated private bank.

“Institutional investors’ view of the major trends that are to shape the global economic landscape over the next three decades can give us significant insight into where capital is likely to flow in both the near- and long-term,” Rishi Kapoor, Investcorp’s co-chief executive officer, said in a statement.

“In this year’s survey, we see digitization and AI as an area ripe for investment. An aging global population and ongoing concerns with climate change also provide ample opportunities for these investors to capture the economic upside associated with these mega trends either through direct investment or, more commonly, by allocating to external managers.”

Top Trends

Automation, digitization and AI boosted its position as investors’ top trend, shooting up 26 points from the inaugural survey in 2019 to 95% of investors. Fifty-three percent said they were likely to invest in this trend through a combination of public and private markets.

The majority of investors expect the automation, digitization and AI trend to be significant over the next two decades, with meaningful progress in key industry segments such as digital infrastructure, robotics and specialized chips occurring seven years from now, according to Investcorp.

But they are also cautious in their expectations, mindful of cyber risk, national data privacy laws and societal debate on the ethics of AI as factors that may disrupt developments in this trend.

Sixty-nine percent of investors in the poll again named an aging population as the second most important long-term trend, albeit down 9 percentage points from the 2019 survey. They expect it to remain important until at least 2050, perhaps indicative of both the large funding gap that exists today and the equally attractive investment opportunity it presents over the long term, Investcorp said.

They expect opportunities in health care services and retirement homes/medical centers to be meaningful in about 10 years. At the same time, investors believe that developments in local immigration laws, black swan events such as pandemics, natural disasters or war, or even a change in life expectancy or birthrates could all influence their investment outlooks.

Climate change ranked as the third most significant trend, cited by 65% of survey participants, unchanged from 2019. Investcorp said it was notable that nearly all investors expect climate change to significantly shape the global economy over the next two decades, consistent with global developments in addressing climate change risks and opportunities.

Sixty-three percent of participants said they were likely to invest in the impact of climate change through both public and private markets, as opposed to favoring one over the other.

About half of investors expect meaningful developments across several industry segments this decade, with the biggest opportunities occurring in the renewable energy and clean technology segments.

However, they cited changes to global political will and technological advances in battery storage or hydrogen as two key factors that may disrupt their current thinking on the significance of climate change as an investment opportunity over the very long term.

Furthermore, some investors specifically noted that changes in the condition of the Gulf Stream — one of Earth’s major climate-regulating ocean currents, which influences weather patterns and sea levels on both sides of the Atlantic — could disrupt the timeline and capital requirements, as well as the risks associated with climate-related investment opportunities.

The following round out the surveyed investors’ top 10 megatrends:

Two of these trends are new to the list this year: China’s growing dominance and cryptocurrencies. Investcorp said this demonstrates that a significant portion of respondents see them not as short-term trends, but ones that are here to stay and deserving of significant attention and capital allocation.

It also pointed out that urbanization and smart cities and redefining global trade, two of the top five trends in the first survey, both decreased in significance this year to eighth and 10th places, replaced by autonomous and electric vehicles and personalized health care in fourth and fifth places.

Fund Allocation and Returns

According to the survey, investors continue to prefer allocating funds to external managers, the choice of 38.6% of respondents, regardless of whether the investment strategy is exclusively private, exclusively public or mixed. This compared with 21.8% who prefer direct investing and 18.4% who combine the approaches.

Twenty-one percent said they do not allocate to trends they see as important. They are not doing so mainly because of a lack of expertise, or they think it is too soon or they have not yet found credible investment opportunities.

Although 85% of investors either lowered or kept return expectations the same over the past year, their net target return expectations — particularly for private market-focused investors — were still higher than those who expressed more optimism about future returns.

The survey found that institutional investors were tilted toward either private or public markets. Private market-tilted investors, who made up 35% of the sample, had the highest expectations in terms of future overall target returns, exceeding those of public market-tilted investors, 42%, by 400 basis points.

Source: ThinkAdvisor

Investcorp partners with 17Capital to structure portfolio of alternative assets

Posted by Muhammad Ibrahim Masudi

17Capital, the global go-to source of strategic financing for investors in private equity, and Investcorp, a leading global provider and manager of alternative investment products, are collaborating to structure a diversified portfolio of private equity, real estate, and credit assets in the US and Europe.

Mercury Capital Advisors, a leading private fund placement and secondary advisory firm, served as exclusive financial advisor to Investcorp on the transaction.

Augustin Duhamel, Managing Partner at 17Capital, said: “We have followed the growth and progress of Investcorp for many years. It is therefore tremendously exciting to enter a partnership with this pre-eminent and forward-thinking firm. We look forward to a strong and mutually beneficial relationship over the coming years.”

Rishi Kapoor, co-CEO at Investcorp, said: “Given the current economic climate, and our expectations over the coming years, we believe that there are significant opportunities to expand our alternative asset portfolios in private equity, real estate and credit. 17Capital is an established and successful capital platform that we believe will help us accomplish our goals”

Sabina Sammartino, Head of Secondary Advisory at Mercury Capital Advisors, said: “We are delighted to have advised Investcorp on this innovative and strategic partnership with 17Capital to further advance Investcorp’s global growth and broaden its institutional investor base”.

Investcorp

Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.

We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach.

Investcorp has today a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of March 31, 2021, Investcorp Group had US $35.4 billion in total AUM, including assets managed by third party managers, and employed over 430 people from 44 nationalities globally across its offices. For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.

Mercury Capital Advisors

Mercury Capital Advisors is a leading global private fund placement and secondary advisory firm. Founded in 2009 as a spinoff from the Merrill Lynch Private Equity Funds Group, the firm assists general partners and limited partners in fundraising and secondary advisory, co-investment and direct deal placement. Mercury’s secondary advisory practice provides comprehensive solutions to managers and owners of alternative asset portfolios seeking to leverage the secondary market to achieve their objectives. Our dedicated secondaries team provides customized solutions including advice on strategic options and structuring alternatives, optimal sales strategy and offerings and complete management of the sale and closing process.

With offices in New York, London, Singapore, Tokyo, and New Delhi, the firm maintains strong relationships with a broad range of the world’s pre-eminent institutional investors, including sovereign wealth funds, corporate and public pension plans, insurance companies, endowments, family offices, foundations, secondary funds, funds of funds, and consultants.

×

By clicking on this link you will leave the Mercury Capital Advisors, LLC (“Mercury”) website and be taken to a website owned and operated by third parties. These links are provided for your information and convenience only and are not an endorsement by Mercury or the Mercury iFunds™ platform. Mercury has no control over the contents of any linked website and is not responsible for these websites or their content or availability. Mercury therefore makes no warranties or representations, express or implied about such linked websites, the third parties they are owned and operated by, the information contained on them or the suitability or quality of any of their products or services.

Accept