Asset Managers Have Stable Outlook With Risks Balanced For 2021 - Asset Manager Outlook 2021
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Elizabeth Campbell
Asset Managers Have Stable Outlook Sean C. Tillman, CFA
Brian Estiz, CFA
With Risks Balanced For 2021 Jenny Panger, CFA
Nigel Greenwood
January 15, 2021
Asset Manager Outlook 2021Key Takeaways
– Our outlook on both the traditional and alternative asset managers is stable.
– We return to a stable outlook (from negative) on the traditional asset managers after two years that saw 19 negative
rating actions, meaning negative outlook, or downgrade, out of 32 negative rating actions and 48 total rating actions.
Alternative asset managers saw 10 negative rating actions while investment holding companies rounded out the
difference.
– We continue to believe that alternative asset managers are better positioned vis-à-vis their traditional peers. That
said, we expect the traditional asset managers credit risk to be more balanced over 2021 as accommodative
monetary and fiscal policy offsets some of the industry headwinds. Our current ratings incorporate these more
balanced conditions and should result in a more equal distribution of upgrades and downgrades over the year.
– Mergers and acquisitions (M&A) remain a focal point. 2020 saw a series of large acquisition announcements, both
within the sector and involving banks and insurance companies. While the size of the deals may taper, we expect
M&A to be a key strategy in the sector as firms reach for greater scale, capital, and capabilities.
– In the U.S., which represents the largest pool of assets under management (AUM) and where the majority of ratings
are based, S&P Global Economists expect a 4.2% U.S. real GDP rebound in 2021, after a 3.9% contraction in 2020.
U.S. unemployment is forecasted to decline to 6.4% by the end of 2021, after ending 2020 at 8.3%. The Fed Funds
rate is expected to be zero bound at least until 2023, while 10-year Treasuries are expected to climb to 2% over the
same period, 90 basis points (bps) from current levels. The average S&P 500 value is projected to be approximately
3500. Ongoing fiscal support underpins these assumptions, so the backdrop could be volatile.
2Global Asset Managers 2020 Rating Actions
Company Date Rating/Outlook Actions
CI Financial Corp. December 2020 Outlook revised to Negative from Stable at 'BBB'
Vida Capital, Inc. December 2020 Outlook revised to Negative from Stable at 'B'
Edelman Financial Center, LLC November 2020 Outlook revised to Stable from Negative at 'B'
Icahn Enterprises L.P. November 2020 Downgraded to 'BB'; Outlook Negative
TortoiseEcofin Parent Holdco LLC November 2020 Downgraded to 'CCC+'; Outlook Stable
Eaton Vance Corp October 2020 Outlook revised to CreditWatch Developing from Stable at 'A-'
StepStone Group Inc. September 2020 Upgraded to 'BB+'; Outlook Stable
StepStone Group Inc. September 2020 'BB' Ratings Placed on CreditWatch Positive
CORESTATE Capital Holdings S.A. August 2020 Downgraded to 'BB'; Outlook Negative
Legg Mason, Inc. July 2020 Upgraded to 'A'; Outlook Stable
Sculptor Capital Management, Inc. July 2020 Outlook revised to Negative from Stable at 'BB-'
KKR & Co. Inc. July 2020 'A' Ratings Placed on CreditWatch Negative
Apollo Global Management, Inc. June 2020 Downgraded to 'A-'; Outlook Stable
Franklin Resources, Inc. May 2020 Downgraded to 'A'; Outlook Stable
Compass Group Diversified Holdings LLC May 2020 Outlook revised to Negative from Positive at 'B+'
CORESTATE Capital Holdings S.A. April 2020 Outlook revised to Stable from Positive at 'BB+'
Icahn Enterprises L.P. March 2020 Outlook revised to Negative from Stable at 'BB+'
Intermediate Capital Group plc March 2020 Outlook revised to Stable from Positive at 'BBB-'
FinCo I LLC March 2020 Outlook revised to Negative from Stable at 'BB'
Focus Financial Partners, LLC March 2020 Outlook revised to Stable from Positive at 'BB-'
Lazard Group LLC March 2020 Downgraded to 'BBB+'; Outlook Stable
First Eagle Investment Management, LLC March 2020 Downgraded to 'BB'; Outlook Stable
CI Financial Corp. March 2020 Downgraded to 'BBB'; Outlook Stable
Russell Investments Cayman Midco, Ltd. March 2020 Outlook revised to Negative from Stable at 'BB-'
TortoiseEcofin Parent Holdco LLC March 2020 Downgraded to 'B'; Outlook Negative
Resolute Investment Managers, Inc. March 2020 Outlook revised to Negative from Stable at 'B+'
Affiliated Managers Group, Inc. February 2020 Downgraded to 'BBB+'; Outlook Stable
Legg Mason Inc. February 2020 'BBB' Ratings Placed on CreditWatch Developing
3Global Asset Managers 2019 Rating Actions
Company Date Rating/Outlook Actions
Intermediate Capital Group plc December 2019 Outlook revised to Positive at 'BBB-'
Guangzhou Industrial Investment Fund Management Co., Ltd. December 2019 Downgraded to ‘BBB’ from ‘BBB+’, Outlook revised to Stable from Negative
CORESTATE Capital Holdings S.A. November 2019 Outlook revised to Positive from Stable at 'BB+'
FIL Ltd. October 2019 Downgraded to 'BBB' On Demerger of Investment Arm
Franklin Resources, Inc. October 2019 Outlook revised to Negative from Stable at 'A+'
Affiliated Managers Group, Inc. October 2019 Outlook revised to Negative from Stable at 'A-'
Vida Capital Inc. September 2019 Assigned 'B' Rating; Outlook Stable
Nuveen Finance, LLC August 2019 Upgraded to 'A'; Outlook Stable
Noah Holdings Ltd. July 2019 Outlook revised to Negative from Stable at 'BBB-'
Lazard Group LLC July 2019 Outlook revised to Negative from Stable at 'A-'
First Eagle Investment Management LLC July 2019 Outlook revised to Negative from Stable at 'BB+'
Tortoise Parent Holdco May 2019 Outlook revised to Negative from Stable at 'BB-'
Victory Capital Holdings, Inc. May 2019 Downgraded to 'BB-' from 'BB'; Outlook revised to Stable from Negative
Focus Financial Partners, LLC May 2019 Outlook revised to Positive from Stable at 'BB-'
EIG Management Company, LLC April 2019 Downgraded to 'BB' from 'BB+'; Outlook revised to Stable from Negative
Legg Mason, Inc. April 2019 Outlook revised to Positive from Stable at 'BBB'
CIFC LLC March 2019 Upgraded to 'BB'; Outlook Stable
BrightSphere Investment Group Inc. March 2019 Outlook revised to Negative from Stable at 'BBB-'
CI Financial Corp. February 2019 Outlook revised to Negative from Stable at 'BBB+'
Apollo Global Management, Inc. February 2019 Outlook revised to Negative from Stable at 'A'
4Key Takeaways - Traditionals
– We return to a stable outlook on the traditional asset managers after placing the
sector on negative at the beginning of 2019.
– Our stable outlook reflects the belief that, over the next year, prolonged industry
headwinds will be roughly offset by elevated asset prices, supporting AUM levels, and
margins. Given the numerous (largely negative) rating actions we have taken over the
past two years, we believe that our ratings, at lower levels from two years ago for
many, are well positioned to see balanced rating actions this year given our current
view of the industry risks and rewards.
– To be clear, we do not expect the decades long headwinds to the traditional asset
managers to wane in 2021. Our view still incorporates a further shift to passive
investing, contributing to fee compression and outflows. Heightened volatility should
be a tailwind to active strategies, particularly equity, but so far remains elusive.
However, we view these headwinds as mostly offset by global central banks’ support
to markets.
5Key Takeaways - Alternatives
– We maintain our stable outlook on the alternative asset managers, which we initially
assigned in 2020.
– Like last year, we continue to believe that alternative asset managers are less exposed
to many of the challenges facing the traditional managers since their AUM is largely
locked-up and strategies are harder to index. Alternative asset managers have seen
significant net inflows as a result of good investment returns and general expansion--
both in size of average fund and broadening platforms.
– Our areas of focus for 2021 include realization activity and investment performance,
both of which may be under pressure due to the macroeconomic backdrop.
Furthermore, 2020 witnessed strong capital deployment and we will be monitoring if
the pace can continue in 2021. Finally, we believe fundraising will be mixed.
Distressed related strategies could witness robust inflows while those focused on
niche areas, such as energy, could face tougher sledding.
– Alternative asset managers partnering with, merging with, or acquiring insurance
companies could continue as alternative asset managers seek to diversify their client
base and look for additional permanent sources of capital and consequently
revenues.
6Industry – Specific Items We Are Monitoring
– We believe that there are several focal points for active management: performance, lowering leverage, M&A,
and environmental, social, and governance (ESG).
– Performance has been elusive while the shift to passive has pressured fees and fund flows. With both
monetary and fiscal policy supporting markets, beta has eclipsed alpha for over the past decade, providing a
strong boost to passive strategies.
– Few companies have repaid debt over the past several years; instead, they have relied on market
appreciation to lower leverage on their balance sheets. Given the market drawdown in March 2020, we
witnessed how ephemeral EBITDA can be in times of market volatility. Consequently, lowering leverage
through repayment will be focal.
– The industry has seen strong M&A activity in recent years, and we expect this trend to continue. Although we
expect consolidation within the industry, cross-sector activity may grow. We have seen banks acquiring asset
managers to diversify their income stream and offset spread compression. Moreover, we could see additional
alternative asset managers combine with insurance companies or seek to expand their existing insurance
businesses through reinsurance or bolt-on investment activity.
– We expect increased focus on ESG factors in response to evolving investor preferences and public interest.
Many asset managers have addressed this at a company level through board or employee diversity
initiatives, as well as at an investment level through ESG focused funds and ESG ratings on existing
investments.
7Company – Specific Items We Are Monitoring
Rating actions will continue to be idiosyncratic as different companies will be better able to navigate
the headwinds
– Given ratings positioning, markets levels, and improving leverage we could see some ratings upside over 2021. That
said, we view lowering leverage through debt repayments as a strong catalyst for financial profile improvement
versus lowering leverage through rising EBITDA, which may prove less sustainable through a market cycle.
– The need for scale, broader capabilities, and client portfolio customization has been a key driver for recent M&A
activity. Depending upon how they are financed and executed, ratings could be affected.
– Larger asset managers are seeing increased scrutiny around their investment stewardship practices. ESG
investment products are an increasing focal point.
– For companies with key-person risk, management transition remains a credit consideration.
– Some asset managers have large cash balances. Because we net surplus cash from funded debt in our view of
leverage, projections of how and when this cash is deployed could affect our view of leverage.
– Share repurchases and debt-funded dividend activity, although not widespread, could erode liquidity and increase
leverage.
8Rating And Outlook Snapshot
Ratings Distribution
AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B CCC+
2% 4% 18% 10% 14% 6% 10% 6% 14% 8% 4% 4% 2%
Outlook Distribution
2% 2%
Stable
22% Positive
Negative
2%
CW Negative
73%
CW Developing
As of Jan 15, 2021. Includes asset managers and investment holding companies.
9Traditional Asset Managers Credit Overview
Our credit outlook for traditional asset managers is stable.
Key rating factors:
– Mixed investment performance of active managers (particularly in equities) relative to benchmarks
– Passive offerings continue to gain market share
– Fee pressure for active managers driven by growth of passive strategies
– Redemption risk, as AUM is not locked-in
– Exposure to fluctuations in financial markets absent organic growth
– Potential for outsized (e.g., relative to free-cash-flow) share repurchases and dividends
Mitigating factors:
– As central banks’ support to the markets appears set to persist, we see ongoing AUM resilience in 2021
– Few maturities coming due in 2021
– Highly flexible operating structure along with financial policy flexibility
– Low interest rates and strong appetite for debt facilitate easier refinancing
– Ratings positioning adequately captures the risks of the traditional sector, in our view
Outlook triggers:
– We could consider a more positive view of the sector if we see improving investment performance and organic growth and debt
repayment
– Conversely, sustained and prolonged market declines, debt-fueled M&A or capital distributions, or significantly weaker operating
performance or net flows could cause us to revert to a more negative view of the sector
10Alternative Asset Managers Credit Overview
Our credit outlook for alternative asset managers is stable.
Key rating factors:
– Credit metrics for alternative asset managers, while largely stable, are unlikely to strengthen.
– Realization activity should increase in 2021, as the macroeconomic backdrop is now supportive.
– The investment landscape remains very competitive, and AUM growth this cycle is reflected in larger fund sizes and
newer strategies that may not have seasoned track records.
– Fee-related earnings, fee-generation prospects (growth in capital not yet earning fees), and earnings mix toward more
stable sources (management fees versus performance fees) provide visibility into future earnings.
– Liquidity for many is very high, but prospects are uncertain regarding ultimate deployment.
– Investors or regulators could bring more attention to return disclosures.
Positive outlook trigger:
– A larger portion of fee-related earnings, strong investment performance, and relatively conservative financial policies
would be considerations for a more favorable view of the sector.
Negative outlook trigger:
– Protracted severe market dislocation could quickly pressure EBITDA and, ultimately, leverage. Increasingly, shareholder-
friendly financial policies could weaken financial profiles. Stumbles in newer strategies or riskier investment pursuits
pose risks as well.
11M&A Landscape Shifts
M&A activity in the asset manager space has shifted from mergers among asset managers to cross-sector
transactions with insurance companies and banks – with mixed rating outcomes resulting to date
– We believe that cost-savings-driven “mergers of equals” among asset managers may be less common in the current
environment, particularly if executed among asset managers with consecutive years of negative net flows.
– Strategic combinations, however, that bolster capabilities are likely to accelerate. And as these tend to be bolt-on in
nature and smaller in size and cost, they are therefore less likely to result in a rating action.
– Strategic relationships between asset managers and insurance companies flourished as yield-seeking insurance
companies (particularly those that sell long-tailed annuity products) paired up with asset managers with a goal to
generate higher returns for their assets in a low interest rate environment.
– In return, asset managers benefit from the steady asset management fees from perpetual capital. Asset managers can
also benefit economically from potential performance fees on those assets that are invested in their alternative funds.
– For banks, the interest in asset managers in recent transactions has been focused on expanding distribution
capabilities and higher-growth product offerings such as ESG or custom-index related, for example. Asset
management business has appeal as providing comparatively stable fees and low capital charges.
Rating actions on acquirers in 2020 were largely neutral, although we lowered ratings or outlooks on acquirers that
financed transactions with a combination of debt or cash that ultimately resulted in higher net leverage post-combination.
12Industry Headwinds Remain Unabated
U.S. Equity Cumulative Flows
Cumulative active flow Cumulative passive flow Cumulative passive ETF – Capital is being allocated from active
2,500 domestic equity toward passive
2,000 products
1,500
1,000
– Exchange-traded funds (ETFs)
500 dominate this shift
0 – Low or no fees, as well as performance,
(500)
have been key drivers
Bil $
(1,000)
(1,500) – Active managers have largely been
(2,000) unable to consistently outperform net
(2,500)
(3,000) of fees
12/31/2006
12/31/2007
12/31/2008
12/31/2009
12/31/2010
12/31/2011
12/31/2012
12/31/2013
12/31/2014
12/31/2015
12/31/2016
12/31/2017
12/31/2018
12/31/2019
Source: Investment Company Institute
13Fee And Cost Pressure Continues
U.S. Mutual Fund Expense Ratios
Equity Hybrid Bond Money market – Traditional asset managers have faced
1.20 significant fee pressures from the shift
to passive.
1.00 – Alternative asset managers are less
exposed to fee pressure. However, they
0.80 may experience average lower fees if
they offer discounts to large investors.
0.60
– Traditional asset managers’ revenues
0.40 are highly correlated to market values.
In contrast, alternatives benefit from
0.20 fees earned based on committed or
invested capital, which is not sensitive
0.00 to market values.
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Prequin.
14Alternatives Continue To Grow
Benefiting From Strong Investor Appetite
Private equity Real estate Infrastructure
Private debt Natural resources – The search for yield is one driver of the
growth in AUM allocated to alternative
5,000
investments.
4,500
– Fees for this asset class are less
4,000
subject to pressure because of the
3,500
complexity of replicating these
3,000 strategies in passive vehicles.
(Bil. $)
2,500
– Competition for good deployment
2,000 opportunities is growing as alternative
1,500 asset managers broaden capabilities.
1,000
500
0
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Source: Prequin.
15Ratings Most At Risk
Global Asset Managers and Holding Companies
Long-term issuer credit Performance fee Forward downside
Company Equity oriented Speculative grade 2020 estimated leverage
rating/outlook oriented trigger
BrightSphere Investment Group Inc. BBB-/Negative X 1.8-2.2 2
CI Financial Corp. BBB/Negative 2.0-3.0 3
Compass Group Diversified Holdings LLC B+/Negative X 40%-45%* 45%*
CORESTATE Capital Holding S.A. BB/Negative X X 5.5-6.0 3.5
FinCo I LLC BB/Negative X X 4.0-5.0 5
Hunt Companies Inc. BB-/Negative X 25%-30%* 30%*
Icahn Enterprises L.P. BB/Negative X 50%-65%* 60%*
KKR & Co. Inc. A/CWNegative X 1.0-2.0 1.75
Noah Holdings Ltd. BBB-/Negative X 0 1.5
Resolute Investment Managers, Inc. B+/Negative X X 4.9-5.3 5
Russell Investments Cayman Midco, Ltd. BB-/Negative X X 4.5-5.5 5
Vida Capital, Inc. B/Negative X 4.5-5.5 5
*LTV ratio
– We view these ratings at risk because of rising leverage, either through additional debt or weaker performance, significant net outflows, or
a risk of downgrading at the parent operating company.
– Although not (yet) included on this list, we consider those traditional asset managers with persistent sizeable net outflows as potentially
vulnerable to negative outlook or rating actions longer-term.
– Valuations across asset classes and geographies are extremely elevated by historical standards over a multitude of metrics. Systemic
(i.e., beta) changes in investor risk appetites could bring about a swift decline in asset prices, providing a catalyst for ratings actions.
– Regulation is increasing globally on average; however, changes in the regulatory landscape remains an idiosyncratic risk among countries.
16Traditional Asset Managers Rating Factor Assessments
Business Risk Financial Risk Capital Management &
Company Final Anchor Financial Policy Liquidity Peer Adjustment SACP Group Status ICR Outlook
Profile Profile Structure Governance
Affiliated Managers Group, Inc. Satisfactory Intermediate bbb Neutral Neutral Strong Satisfactory Favorable bbb+ Not applicable BBB+ Stable
Strategically
AllianceBernstein L.P. Satisfactory Minimal a Neutral Neutral Strong Satisfactory Neutral a A Stable
important
BlackRock, Inc. Strong Minimal aa- Neutral Neutral Exceptional Strong Neutral aa- Not applicable AA- Stable
BrightSphere Investment Group Inc. Fair Modest bbb- Neutral Neutral Strong Fair Neutral bbb- Not applicable BBB- Negative
CI Financial Corp. Satisfactory Intermediate bbb Neutral Neutral Adequate Satisfactory Neutral bbb Not applicable BBB Negative
Clipper Acquisitions Corp. Fair Intermediate bb+ Neutral Neutral Exceptional Fair Neutral bb+ Not applicable BB+ Stable
Eaton Vance Corp. Satisfactory Minimal a- Neutral Neutral Exceptional Satisfactory Neutral a- Not applicable A- C.W. Dev
First Eagle Investment Management, Inc. Fair Aggressive bb- Neutral FS-5 Adequate Fair Favorable bb Not applicable BB Stable
FIL Ltd. Satisfactory Intermediate bbb Neutral Neutral Exceptional Fair Neutral bbb Not applicable BBB Stable
FMR LLC Strong Minimal aa- Neutral Neutral Exceptional Fair Neutral a+ Not applicable A+ Stable
Franklin Resources Inc. Satisfactory Minimal a Neutral Neutral Exceptional Satisfactory Neutral a Not applicable A Stable
GAMCO Investors Inc. Weak Minimal bb+ Neutral Neutral Strong Fair Favorable bbb- Not applicable BBB- Stable
Moderately
IGM Financial Inc. Satisfactory Modest bbb+ Neutral Neutral Strong Satisfactory Favorable a- A Stable
stategic
Invesco Ltd. Satisfactory Intermediate bbb Neutral Neutral Strong Satisfactory Favorable bbb+ Not applicable BBB+ Stable
Janus Henderson Group PLC Fair Minimal bbb Neutral Neutral Exceptional Satisfactory Favorable bbb+ Not applicable BBB+ Stable
Lazard Group LLC Satisfactory Modest bbb+ Neutral Neutral Exceptional Satisfactory Neutral bbb+ Not applicable BBB+ Stable
Neuberger Berman Group LLC Satisfactory Modest bbb+ Neutral Neutral Exceptional Satisfactory Neutral bbb+ Not applicable BBB+ Stable
Strategically
Nuveen Finance LLC Satisfactory Significant bb+ Neutral Neutral Adequate Fair Favorable bbb- A Stable
important
Resolute Investment Managers, Inc. Weak Aggressive b+ Neutral FS-5 Adequate Fair Neutral b+ Not applicable B+ Negative
Russell Investments Cayman Midco, Ltd. Fair Aggressive bb- Neutral FS-5 Adequate Fair Neutral bb- Not applicable BB- Negative
Standard Life Aberdeen PLC Satisfactory Minimal a- Neutral Neutral Exceptional Satisfactory Neutral a- Not applicable A- Stable
TortoiseEcofin Parent Holdco LLC Vulnerable Highly leveraged b- Neutral FS-6 Adequate Fair Neutral b- Not applicable CCC+ Stable
Victory Capital Holdings, Inc. Fair Aggressive bb- Neutral FS-5 Adequate Fair Neutral bb- Not applicable BB- Stable
Virtus Investment Partners Inc. Weak Intermediate bb Neutral Neutral Strong Fair Neutral bb Not applicable BB Positive
Waddell & Reed Financial Inc. Weak Minimal bb+ Neutral Neutral Strong Fair Favorable bbb- Not applicable BBB- Stable
17Alternative Asset Managers Rating Factor Assessments
Business Risk Financial Risk Capital Management &
Company Final Anchor Financial Policy Liquidity Peer Adjustment SACP Group Status ICR Outlook
Profile Profile Structure Governance
Apollo Global Management, Inc. Satisfactory Modest bbb+ Neutral Neutral Exceptional Satisfactory Favorable a- Not applicable A- Stable
Ares Management Corp. Satisfactory Modest bbb+ Neutral Neutral Strong Satisfactory Neutral bbb+ Not applicable BBB+ Stable
Blackstone Group Inc. Strong Minimal aa- Neutral Neutral Exceptional Strong Unfavorable a+ Not applicable A+ Stable
Brookfield Asset Management Inc. Strong Intermediate bbb+ Positive Neutral Exceptional Strong Neutral a- Not applicable A- Stable
Citadel Limited Partnership Fair Modest bbb- Neutral Neutral Adequate Satisfactory Favorable bbb Not applicable BBB Stable
EIG Management Co. LLC Fair Significant bb Neutral Neutral Adequate Fair Neutral bb Not applicable BB Stable
FinCo I LLC Fair Aggressive bb- Neutral Neutral Exceptional Fair Neutral bb- Moderately strategic BB Negative
Franklin Square Holdings LP Fair Intermediate bb+ Neutral Neutral Adequate Fair Unfavorable bb Not applicable BB Stable
Intermediate Capital Group PLC Satisfactory Intermediate bbb- Neutral Neutral Strong Satisfactory Neutral bbb- Not applicable BBB- Stable
KKR & Co Inc. Satisfactory Minimal a Neutral Neutral Exceptional Satisfactory Neutral a Not applicable A C.W. Neg
Oaktree Capital Group LLC Satisfactory Minimal a- Neutral Neutral Exceptional Satisfactory Neutral a- Moderately strategic A- Stable
The Carlyle Group Inc. Satisfactory Intermediate bbb Neutral Neutral Exceptional Fair Favorable bbb+ Not applicable BBB+ Stable
Vida Capital, Inc. Weak Aggressive b+ Neutral FS-5 Adequate Fair Unfavorable b Not applicable B Negative
Other Asset Managers Rating Factor Assessments
Business Risk Financial Risk Capital Management &
Company Final Anchor Financial Policy Liquidity Peer Adjustment SACP Group Status ICR Outlook
Profile Profile Structure Governance
AssetMark Financial Holdings Inc. Fair Minimal bbb- Neutral Negative Adequate Fair Neutral bb Moderately strategic BB+ Stable
China Jianyin Investment Ltd. (JIC) Fair Minimal bbb Neutral Negative Adequate Fair Neutral bb+ Not applicable A Stable
CORESTATE Capital Holding S.A. Fair Significant bb Neutral Neutral Adequate Fair Neutral bb Not applicable BB Negative
Focus Financial Partners LLC Fair Aggressive bb- Neutral FS-5 Adequate Fair Neutral bb- Not applicable BB- Stable
Noah Holdings Ltd. Fair Minimal bbb- Neutral Neutral Strong Satisfactory Neutral bbb- Not applicable BBB- Negative
The Edelman Financial Center, LLC Fair Highly leveraged b Neutral FS-6 Adequate Fair Neutral b Not applicable B Stable
Zhongrong International Trust Co. Ltd. Fair Minimal bbb Neutral Negative Strong Weak Neutral bb Not applicable BB+ Stable
18Investment Holding Companies (IHCs) Rating Factor Assessments
Business Risk Financial Risk Management &
Company Final Anchor Liquidity Peer Adjustment Group Status ICR Outlook
Profile Profile Governance
Compass Group Diversified Holdings LLC Vulnerable Significant b+ Adequate Fair Neutral Not applicable B+ Negative
E-L Financial Corporation Limited Satisfactory Minimal a Exceptional Satisfactory Neutral Not applicable A Stable
Hunt Companies Inc. Weak Intermediate bb Adequate Fair Negative Not applicable BB- Negative
Icahn Enterprises L.P. Fair Aggressive bb- Adequate Fair Positive Not applicable BB Negative
Loews Corporation Satisfactory Minimal a- Exceptional Satisfactory Positive Not applicable A Stable
19Analytical Contacts
Elizabeth Campbell Sean C. Tillman, CFA
Director Associate Director
elizabeth.campbell@spglobal.com sean.tillman@spglobal.com
+1-212-438-2415 +1-347-603-5262
Brian Estiz, CFA Jennifer Panger, CFA
Associate Director Associate
brian.estiz@spglobal.com
jennifer.panger@spglobal.com
+1-212-438-3735
+1-212-438-2276
Nigel Greenwood
Director
nigel.greenwood@spglobal.com
+44-207-176-1066
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