For credit specialists, it just might be time to consider hopping the pond. Investment into credit asset management in Europe seems to be picking up, at least for the short-term, and the bulk of the operations are taking up shop in the UK or being driven by UK-based firms elsewhere. Here are some of the recent developments.
Crescent Capital, a Los Angeles-based alternative investment firm, announced expansion of its credit asset management capabilities in the UK. Crescent says it's opening a new office in London, with plans to target credit opportunities across Europe.
Northill Capital, a London-based asset manager, is launching Goldbridge Capital Partners, a new European credit asset management company. Goldbridge Capital Partners is expected to get FSA approval by year's end.
Meanwhile, Stone Tower Capital announced creation of a new firm, Stone Tower Europe, headquartered in Dublin. The New York City-based alternative credit asset manager is looking to grow its European operations and customer base there. Expect the best opportunities for credit and risk analysts, as well as valuation modeling and assorted IT experts.
Stateside, acquisitions continue to transform the credit marketplace, shrinking the number of asset managers. The list of U.S. players acquiring funds and asset managers continues to grow, including acquisitions by Citigroup's City Capital Advisors, Carlyle, Ares Management, Apollo Global Management and Resource Capital Corp. With a smaller number of players in the U.S., it can't be good news for the job marketplace in the sector.
Interestingly, one of the bigger movers and shakers, British private equity firm 3i Group recently announced plans to move into the credit asset management business in the U.S. and Asia. The push by the UK's largest publicly-traded private equity firm will certainly continue to shakeup U.S. asset managers. The best guess is that 3i is sure to acquire some existing players.