Dexion capital, the investment bank specialising in alternatives, says research being published as part of its Third Annual Research Conference suggests the market in listed alternatives is now a $73bn sector on the London and Amsterdam stock exchanges.
Some $12.6bn has been added via IPOs in the past 12 months, with a further $5.4bn via follow on funding.
Credit IPOs raised some $1.38bn and property fund IPOs raised $2.6bn, the bank’s research suggests.
Tom Skinner, head of Research, said investors had shown interest in areas such as student accomodation and care homes.
“The highly regulated environment which we have seen post-crisis and the constraints that this has brought to banks, has led to a number of investment companies opportunistically launching to provide alternative sources of finance to borrowers or to work alongside the banks to maintain their lending activities,” he said.
“Indeed, almost £1bn has been raised within the alternative financing sub-sector in the last 12 months. We believe that there is further scope for the listed credit investment fund universe to grow, especially for illiquid strategies where there are premium returns available and gaining exposure to these strategies can be a challenge. In a changing world, investors need to keep their investment universes refreshed and wide. This is why ‘alternatives’ should be considered.”
Ana Haurie, executive group managing director for Dexion Capital, added: “Technology and changing demographics have directly impacted alternative financing and property funds respectively, which have evolved their investment cases to take advantage of the opportunities they provide. All are about finding solutions to supply shortages and lack of adequate provision at a clearing price: SME loans, property loans, consumer loans, GP surgeries, student housing and residential.”
Dexion Capital’s conference is set to feature speakers including:
- Peter Wilson, MD Investment Program at British Business Bank
- Hubert Tissier de Mallerais, partner & senior portfolio manager at Chenavari Capital Solutions
- Simon Champ, CEO of Eaglewood Europe and of P2P Global Investments
- Peter Denton, partner & head of European Debt at the UK-listed real estate debt fund Starwood European Real Estate Finance
- Rob Martin, director of Research at Legal & General Property
- Harry Hyman, managing director, Primary Healthcare Properties
- Tom Ward, partner at GCP Student Living
- Andrew Cunningham, CEO for Grainger PLC
Turn on TV news market reports, flick to the financial commentary in the business pages, and more often than not those holding forth their views of the sector will be male.