Investment Management Market Update Q1 2023 – Funds & Asset Management

Investment Management Market Update Q1 2023 – Funds & Asset Management

Over the past 12 months, there has been a notable decrease in assets under management (AUM) across Europe, resulting in a slowdown in recruitment activity during the first quarter (Q1). Many asset management firms specializing in public markets have temporarily halted their 2023 recruitment strategies due to declining fee revenue and market volatility.

However, alternative investment firms, particularly those operating in the private markets, have regarded market volatility as an opportunity to utilize their available capital (dry powder) in pursuit of generating alpha.

Furthermore, the Central Bank of Ireland (CBI) has placed a greater emphasis on substance and specialization requirements for investment management oversight professionals. This regulatory focus has influenced the hiring plans of asset management firms.

Notable Points:

Management Company New Entrants.

The influx of new entrants into the Irish market has slowed down, but there are still new firms establishing their presence in 2023. One such example is Global X, a specialist ETF investment manager, which recently appointed Brendan Needham as Country Head. Ireland has emerged as an appealing destination for US managers looking to expand their market presence across the EU, with approximately 65% of European ETF assets now being domiciled here.

Ireland’s Sovereign Wealth Fund.

Ireland’s Finance Minister, Michael McGrath, has announced plans to establish a Sovereign Wealth Fund in 2024. The government aims to invest a 10-billion-euro tax surplus, which will help alleviate cost pressures related to pension and infrastructure spending over the long term. This development is expected to bring excitement to the Irish Funds Industry.

Consolidation.

We have observed an increase in US managers acquiring European firms that possess a strong track record in private credit or ESG investment strategies. For instance, Goldman Sachs acquired NN, Franklin Templeton acquired Alcentra, and Nuveen acquired Acrmont. We predict that consolidation and strategic partnerships will continue to be a prevailing trend in 2023, with LionTrust poised to acquire GAM and First Sentier Investors announcing a strategic partnership with Albacore in Q1.

Firms that hired externally in 2023:

• Dermot MacNamara joined Muzinich & Co from HPS Investment Partners.
• Ronan McCabe joined Abbey Capital from Mercer Global Investments.
• Ray Colleran joined Bain Capital from Whitestar.
• Conor Foley joined Principal Global Investors from KB Associates.
• Elizabeth Geoghegan re-joined Goodbody from Mediolanum.
• Cian Pierce joined Amundi from Bank of Ireland.

About us:

Founded in 2016, Camden Recruitment Partners is a boutique recruitment consultancy specializing in the funds and asset management sector. We operate across the EMEA region, covering both public and private markets.

If you would like to arrange a confidential consultation email mark@camden.ie