February 2022 | Now valued at nearly $3 trillion and 1% of global assets, digital assets have become increasingly prevalent in institutional investors’ portfolios, as crypto hedge funds have posted stellar recent returns. Though regulatory concerns remain, advances in counterparty oversight and the expansion of exchanges are helping foster market institutionalisation

Emerging asset managers have bespoke prime brokerage needs which are often better served by boutique providers who can support their rapid evolution. This group of managers are looking for partners who can facilitate growth while providing cost efficient, high quality, swift customer service. 

This report outlines the benefits emerging managers can access by working with bespoke prime services providers including more transparent and competitive offerings, exceptional client service and capital introduction opportunities. 

Hedgeweek’s annual Global Outlook once again takes an in-depth look at the range of issues impacting equities, credit, macro and more, with both established, brand-name hedge fund managers and smaller start-up names across regions offering candid and often-contrarian perspectives on the key investment themes and risks dominating their respective markets over next 12 months.

The report also takes the temperature of the hedge fund investor community, and considers how ESG, technology and other emerging new trends are continuing to influence and disrupt this most pioneering and forward-thinking of industries. We hope you enjoy it.

As investor demand for cryptocurrencies and digital assets continues to rise, Gibraltar is carving out a niche for itself in the space. With an accommodative regulatory environment which provides robust protection for investors and operators alike, the territory’s appeal was crystallised after it was the third most popular jurisdiction for crypto funds. 
 
But the jurisdiction’s ambitions branch out beyond digital and crypto assets. This report details the regulatory and investment innovations which help encourage further growth in the industry.

The articles outline the legislative structures which aim to attract managers to domicile their funds in Gibraltar. These include the Experienced Investor Fund and changes which allow for a Dual AIFM Regime and the incorporation of Protected Cell Limited Partnership (PCLP). Providers also note how the EU exit has allowed Gibraltar to recapture its competitive edge, particularly in addressing challenges emerging managers often face and supporting their need for speed-to-market with a more nimble approach. 

The global private credit market has experienced significant growth in recent times. At the start of last year there were 436 private credit funds in the marketplace. By October 2020, that number had risen to 520, according to the Financial Times, as investors sought out alternative yield opportunities in response to the surge in public equity and debt markets. 

Alternative fund managers have launched an array of private credit strategies, from opportunistic credit and distressed credit funds, to senior secured loan and mezzanine funds, in a bid to meet investor demand. The result has been a record amount of dry powder, with European private credit managers alone, sitting on USD93 billion of capital at the end of last year, according to Preqin figures. 

However, as managers wait to deploy those hard fought investment dollars, they need to think about the operational complexity involved and, crucially, whether they have the system capabilities required to meet the customisation needs of discerning investors.