DBRS Morningstar: Symbiotic Growth - Private Debt Fuels Alternative Asset Managers’ Expansion

DBRS, Inc. (DBRS Morningstar) published a commentary reviewing how private debt has influenced the expansion of alternative asset managers. In a symbiotic expansion, the growing demand for private debt is fueling the expansion of alternative asset managers. By broadening their capabilities, these managers are encouraging borrowers to utilize these new sources of debt.

Key highlights include:

-- Private debt assets under management (AUMs) reached a record $807 billion as of June 2019. This growth has increased dramatically in recent years, having more than doubled since 2012.
-- Alternative asset managers are growing with the expansion of private debt, providing investors with access to various alternative assets, private equity and real estate that are not readily accessible otherwise.
-- In response to these growing market needs, DBRS Morningstar has published a new methodology entitled: “Global Methodology for Rating Investment Management Companies”.

“With this growth, there is a greater need for transparency, which can be provided via credit ratings. Furthermore, these alternative asset managers are looking to access bank loans or issue debt, as part of their expanding funding structure, which could also require a rating. In response to these growing market needs, DBRS Morningstar has published a new methodology entitled: ‘Global Methodology for Rating Investment Management Companies’,” said Lisa Kwasnowski, Senior Vice President.

This commentary is available at www.dbrs.com.

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