The Asset Finance Space

Abstract

Asset Finance investments have expanded over the past years in terms of assets under management, the breadth of investment opportunities as well as their geographical distribution. Currently, an estimated 400 managers are assumed to be active in this space. However when identifying and quantifying the Asset Finance universe on an aggregate level, one is confronted with a number of challenges. The primary reasons for these challenges include semantics (what exactly qualifies as Asset Finance?) as well as the “nicheness” of the space. This article seeks to demystify Asset Finance first by defining its boundaries and then by clarifying the distinguishing characteristics of the primary investment strategies which fall under this umbrella. The performance and risk characteristics of these strategies are also explored.

TOPICS: Real assets/alternative investments/private equity, risk management, performance measurement