According to a report by PwC, the asset management industry is expected to see one in six firms disappear by 2027 due to market volatility, high interest rates, and fee pressures. The report also reveals that nearly three-quarters of asset managers are considering acquiring or merging with competitors. Welcome to FT Asset Management, where we delve into the world of the global asset management industry worth trillions of dollars. In this article, we explore the unexpected career shift of renowned hedge fund manager Philippe Jabre, who has ventured into the brewing business after buying back his family’s brewery in Lebanon.
Jabre’s grandfather, Michel Jabre, founded Brasserie Almaza 90 years ago. The brewery faced closure in mid-2021 as Heineken, its longtime backer, planned to sell its controlling stake due to Lebanon’s economic difficulties. Concerned about the potential loss of up to 200 jobs and the closure of a family business, Jabre decided to take over the brewery. In an interview, Jabre expressed his surprise at becoming a brewer but emphasized his enjoyment of the challenge of something completely different. Jabre’s transition from a star hedge fund manager to a brewer showcases his belief that life continues under different hats.
Running a business in Lebanon’s current economic crisis poses unique challenges, as we explore in the full story. However, Jabre remains optimistic and hopes to inspire others to invest in their country despite the difficulties. Lebanon has been grappling with an economic crisis since 2019, compounded by a leadership vacuum. Jabre’s dedication to preserving Brasserie Almaza symbolizes his unwavering faith in Lebanon.
In other news, Chancellor Jeremy Hunt is looking to bolster UK growth by collaborating with the City of London to redirect the country’s pension savings into investments that promote growth. Hunt aims to release capital for fast-growing companies by addressing the regulatory barriers that hinder investment. However, he emphasizes that this initiative is about evolution rather than revolution, assuring the financial services industry that he will not dictate where to invest. The City of London is expected to announce an investment deal today, where companies have committed £50 billion to support early-stage businesses and private equity in various sectors.
The bulk annuity market, which allows pension funds to transfer their liabilities to insurers, is experiencing a surge in activity due to higher interest rates. As funding levels of schemes rise, more pension funds are exploring the option of buyouts. Transferring pension liabilities to insurers relieves sponsoring companies of reporting pension surpluses or deficits, potentially improving their financial position. Moreover, bulk annuity deals contribute to revenue growth for insurers such as Phoenix Group, Aviva, and Legal & General.
Lastly, here are five stories that you shouldn’t miss this week:
– Financier Crispin Odey faces more allegations of sexual assault and harassment.
– New York City Retirement Systems plans to reduce its investments in equity markets.
– The Financial Conduct Authority criticizes asset managers for leaving investors exposed to harm.
– Hedge fund manager Man Group acquires a controlling stake in credit fund Varagon Capital Partners.
– Abu Dhabi’s sovereign wealth fund and Bank of Montreal acquire stakes in alternative asset manager Sagard.
Stay tuned for our next issue of FT Asset Management for more insights into the ever-evolving world of asset management.
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