Expertise
Debt financing is at a crossroad.
1.
Post-GFC regulations fundamentally changed the role of banks. They are retrenching due to regulations impacting their lending business. Leverage and solvency constraints force traditional banks to hold more capital in order to issue more loans, and liquidity constraints make short-term bank balances unsuitable for long-term loans.
2.
Megatrends are creating unprecedented capital needs. The world needs to finance the climate & energy transition - renewable Energy Investment to reach $1Trn per year under IEA Net Zero scenario. This is only one of the world's urging investment needs amongst many others such as the AI revolution, the world's ageing population, and the further development of utilities required by the global urbanization.
Source: BIS, Haver Analytics
Source: WIllis Watson Report as of 2020
The opportunity is immense for Private Debt actors.
Over the past decade, public equity and fixed income markets have increasingly delivered beta-like returns, with 93% of active managers underperforming the S&P 500 over 15 years. Since 2012, active equity mutual funds and ETFs have experienced sustained outflows as capital has steadily shifted toward passive strategies.
At the same time, recent market disruptions—most notably the Covid-19 crisis—have prompted investors to reassess their perception of the liquidity of listed products as it has often proven one-sided in times of stress.
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These structural shifts represent both a profound opportunity and a strategic challenge for the financial industry, positioning Private Credit as a key pillar in the institutional portfolio of the future.
Embrace change with confidence.
Navigate it with AVA.
Stay ahead of the curve: Originate to Distribute
Traditional banks keep loans originated on their Balance Sheet.
Originate to Distribute banks further distribute loans.
A compelling business model for all stakeholders.
Capital Seekers
Capital is more readily available to finance investment needs that are higher than ever.
Banks
+ Increase distribution
+ Increase Price-to-Book
+ Reduce and diversify risk
Capital Providers
Diversify away from listed products to capure illiquidity premiums and reduce volatility
Our Strategic Solutions for Global Finance
We empower clients across the industry to leverage these megatrends and the Originate to Distribute model through dedicated expertise, Culture and Change management, Front Office Organization, Risk and Compliance frameworks, and Tech & Data leadership.
Front
Office
Organization
Culture
&
Change
Management
Risk
&
Compliance
Framework
Tech
&
Data
Platform
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Reduce costs
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Generate additional revenue
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Increase Price-to-Book
Banks
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Traditional banks
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Originate-to-distribute
Non-bank FI
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Asset Managers
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Insurance Companies
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Pension Funds
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Family Offices
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Increase Private Debt volume and allocation
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Increase ESG and Impact investing
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Source and onboard talent
FinTechs
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Cloud banking platforms
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Emerging market places
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Empower your clients to operate in this new model
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Consolidate your industry
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Connect with bank senior management