Creating bespoke portfolios through alignment of bank and asset management capabilities.
The bespoke approach is particularly appealing to investors who are attracted to real assets but frustrated that they can’t access the assets they need.
- Real assets are appealing to investors with long-horizon liabilities, but investing in real assets can take time and investors often can’t purchase assets that closely match their risk profile and liabilities.
- The solution is to source assets through a bank with a large pipeline of deals, allied to an asset management capability that can manage each of those deals. In this way, investors can tailor their real asset exposures.
- There is sometimes a conflict of interest risk when sourcing loans from multiple banks. When partnering with a single bank which has “skin in the game”, and will remain a lender for the duration of the loan, conflict of interest risk is diminished.