Man Group is trying to broaden its non-public credit score providing by making acquisitions or hiring new groups, to capitalise on the fast-growing asset class.
The hedge fund reportedly plans to diversify into totally different credit score methods within the coming years to fulfill rising demand from shoppers and reap the benefits of the expansion of non-bank lending, Eric Burl, Man Group’s head of discretionary, instructed Bloomberg in an interview.
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“We’re open to buying companies, including groups or people,” Burl stated. “If we predict it’s one thing the place we will add worth and it’s related to shoppers, sport on.”
Earlier this 12 months, Man Group bought a controlling stake in Varagon Capital Companions, a New York-based asset supervisor that lends on to mid-market corporations.
Man Group now gives credit score danger sharing, actual property debt and direct lending, and structured credit score, because of the acquisition.
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Burl stated he sees non-public credit score as a “structural, multi-year prospect” that’s probably decrease danger than fairness markets.
The “subsequent 5 years are going to look loads totally different to the final 5 — it’s a large alternative,” he added, based on Bloomberg.
The non-public credit score market is at the moment valued at $1.7trn (£1.3trn), based on Preqin information, and is predicted to swell to $2.8trn by 2028. Larger rates of interest have benefitted the sector, in addition to mainstream banks’ retreat from company lending.