Starbucks. Apple. Shopify. Allianz. These companies – and many others – have identified and are investing in an exciting new area that promises to deliver revenue growth, higher customer engagement, and more brand loyalty. It falls under the broad Fintech category. Per Bain, the fastest growth area of this financial service capability accounted for $2.6…
Sometimes, it is best to look back to chart the future. In 2021, our commentaries covered a lot of ground, and they serve as our compass for the coming year. We reminisced on how we broke free from traditional alternative investing to embrace a future centered around digital transformation, especially in private credit. This journey…
Remember 2009? President Obama was beginning his first term as US president on the heels of the 2008 crisis. The S&P 500 started the year at 932, dropped to a low of 677 in March before roaring back to end at 1,115. The yield on the U.S. 10-year ended at 3.85% (not a typo!). Apple’s…
In early August, Square, Inc., announced a $29 billion acquisition of Afterpay, a pioneer of Buy Now, Pay Later (“BNPL”). Many asked: What is BNPL? It is a financing solution that enables consumers to make purchases in installments. Through a BNPL partner, merchants provide a consumer with a way to purchase a product now while…
For most of the pandemic in 2020, it seemed like travel was dead. That sentiment emanated from events like Hertz’ filing for bankruptcy protection, endless rows of lifeless aircraft, and countless shuttered hotels. Would we ever fly again, let alone get on a cruise ship? Yet here we are. Leisure travel stared us in the…
No, not the band, although we could all probably use a dose of Rock n Roll All Night these days. K.I.S.S. is an acronym, slightly hokey in that Forrest Gump kind of way. Yet its banality hides a very powerful message: Keep It Simple Stupid. Many of us, and especially those who suffer the curse…
For passionate football (soccer) fans from a few generations ago, the name Socrates likely does not evoke ancient Greek aphorisms. Rather, the name conjures happy memories of the legendary, 6-foot-3 central attacking midfielder who captained one of the sport’s greatest teams, Brazil’s 1982 FIFA World Cup squad. “Doctor Socrates” – he was also a practicing…
We have a lot of ideas to share, so sometimes it takes a good tune (full blast of course) to inspire and drive focus when both are in scant supply. Queen’s lyrical I Want to Break Free reminded us how, coming out of the Great Financial Crisis, we broke free: We left the herd and traditional alternative…
In recent conversations, we have often been asked to describe HCG’s experience with our asset class: Digital Credit. As one of the longest-tenured investment managers in this space, we have had a front row seat to its evolution from a galaxy far away to mainstream. We have seen how well managed portfolios of digital credit…
Valuation Q&A
October 25th, 2022 | by Chelsea
Many capital allocators have embraced the thesis that financial services will continue to modernize through technology and innovation. They understand the unparalleled transparency offered by digital private credit and are keen to add exposure to their private debt portfolio. A digital private credit portfolio owned via an open-ended evergreen investment program must value its underlying…