Mitali Sohoni has been promoted to the new Head of U.S. Markets at Citi, industry sources reported on Monday.
Sohoni will maintain her current role as Head of Asset-Backed Financing in addition to her new position, according to the specialized media outlet The Trade.
The executive joined Citi in 2004, according to her LinkedIn profile.
During her tenure, she has overseen various business areas, including credit financing, asset-backed securities, clean energy, global infrastructure, the residential sector, Citi Community Capital, the municipal sector, and Citi’s Asset Financing Group.
Meanwhile, Dina Faenson was appointed CEO of Citigroup Global Markets (CGMI).
Faenson will report to Andy Morton, Head of Markets, and will maintain her current position as Head of Markets, Counterparty Trading, and Risk, reported Global Trading.
With over 18 years at Citi, Faenson has held positions of responsibility, including Head of Markets and Global Co-Head of Rates and Currencies for Valuation Adjustments.
A new research from Carne Group reveals that alternative asset classes are set to see the biggest increase in fund raising in 2024, with private equity, renewable energy, and hedge funds expected to lead the way.
The recent survey of over 200 alternative asset, equity, and fixed income fund managers in 10 countries, collectively managing $1.6 trillion, found that private equity came top, followed by renewable energy, hedge funds, private debt, and real estate, as the top five asset classes expected to see the biggest increase in fund raising in 2024.
According to the global study, a significant majority of wealth managers and institutional investors, who collectively manage $1.7 trillion in assets, anticipate increasing their allocation to private equity by 10% or more in 2024. Similarly, 70% of respondents expect to increase their allocation to private debt. The study also found that 64% of respondents plan to increase their allocation to renewable energy, 49% to real estate, and 42% to hedge funds.
However, a big challenge for alternative fund managers is an expected increase in consolidation in their markets driven by fund raising challenges and increasing regulatory costs. Over the next five years, 84% of fund managers surveyed expect the level of consolidation in the real estate fund management sector to increase, and the corresponding figures for the private equity, private debt, and hedge fund sectors are 69%, 64%, and 68% respectively.
“The appetite for alternative asset classes amongst investors is increasingly rapidly, fuelled by a growing desire from investors to diversify their portfolios and to manage volatility,” John Donohoe, CEO at Carne Group said.
However, the challenges facing alternative fund managers around growing regulatory complexity makes it more difficult for them to capitalise on increased investor appetite for their funds, the Carne Group’s added.
About the Research
The research was conducted by Carne Group, a fund regulation and governance solutions for the asset management industry, in partnership with Pureprofile, a market research company. The survey was conducted in December 2023 and January 2024, and included over 200 senior executives working for fund managers in 10 countries, as well as 201 investors working for pension funds, family offices, wealth managers, insurance asset managers, and consultants to institutional investors and asset managers.
The Spanish press has described a “revolution” at Banco Santander this Wednesday. In any case, what the entity has announced constitutes a full-scale restructuring, with the merger of the Investment Platforms & Corporate Investments unit and the global Wealth Management & Insurance business.
Leading this new sector is one of Santander’s strongmen, Javier García Carranza, who is now responsible for Asset Management, Private Banking, and Insurance.
According to an internal memo accessed by the Spanish press, García Carranza replaces Víctor Matarranz, who previously led Wealth Management. From now on, Matarranz will work directly with the group’s CEO, Héctor Grisi, to “support him in executing the strategy,” according to the internal memo.
According to public figures, the Wealth Management & Insurance unit manages assets worth €482 billion ($523 billion). In the first quarter, the unit’s net profit rose by 27% year-on-year, representing around 13% of Santander group’s profits.
With this change, the group’s global areas are reduced to five (Retail & Commercial, Digital Consumer Bank, Payments, Corporate & Investment Banking, and Wealth Management & Insurance) at the expense of the division into geographical markets. The changes were announced at the end of 2023 and aim to simplify the entity’s offerings.
Vanguard announced that its Board of Directors has appointed Salim Ramji as the Company’s new Chief Executive Officer and a member of the Board, effective July 8, 2024.
Ramji succeeds Tim Buckley, who, as previously announced, will retire and step down as Chairman and CEO.
Ramji has more than 25 years of experience in investments, capital markets and wealth management, including a decade as a senior leader at BlackRock, leaving in January 2024. Most recently, Ramji was Global Head of iShares & Index Investing, where he was responsible for managing a majority of the firm’s client assets and evolving the iShares platform to provide an even broader set of innovative low-cost products for investors globally.
His contributions led to expanded investment access for tens of millions of investors, a more central role for ETFs in retirement and wealth portfolios and a more efficient bond market with ETFs as an enabling technology. At BlackRock, he led the implementation of a voting choice platform, which democratizes client access to the proxy voting process.
“It’s an honor to join Vanguard, an institution I have long admired and respected. I am drawn to Vanguard because of the firm’s clarity and consistency of purpose and am very excited to get to work and partner with the outstanding leadership team to lead the company into the future. The current investor landscape is changing, and that presents opportunities for Vanguard to further its mission of giving people the best chance for investment success, which is more relevant today than at any time in the firm’s five-decade history. My focus will be to mobilize Vanguard to meet the moment while staying true to that core purpose – remaining the trusted firm that takes a stand for all investors,” commented Ramji.
Prior to leading iShares, Ramji was the Head of U.S. Wealth Advisory and began his BlackRock career as the Global Head of Corporate Strategy. Before joining BlackRock, he was a Senior Partner at McKinsey & Company in charge of the firm’s Asset & Wealth Management Practice. He started his career as a lawyer at Clifford Chance in London and Hong Kong.
Mark Loughridge, Lead Independent Director, said: “The Board welcomes Salim to the leadership team and looks forward to working closely with him as we strengthen and expand our mission and purpose, driven by serving the interests of individual investors. Vanguard’s distinctive structure and culture have helped tens of millions of our investor-owners plan for their future and families. We have significant opportunities for growth ahead, including how technology and the client experience can drive solutions and extend the benefits of wealth management to more investors. Salim is an exceptional leader who is aligned with Vanguard’s mission-driven culture, making him the ideal candidate. Vanguard has an important future, and we believe he is the best person for the job.”
Vanguard also announced that Greg Davis, President and Chief Investment Officer, will be appointed to Vanguard’s Board of Directors and have expanded responsibility for regulatory and government affairs.
Upon the effective date of Ramji’s appointment as CEO, Buckley will step down as Chairman and CEO. Mark Loughridge, Vanguard’s Lead Independent Director, will be appointed nonexecutive Chairman.
In addition, John Murphy, President and Chief Financial Officer of The Coca-Cola Company, will be appointed to the Board of Directors of Vanguard effective June 1, 2024. He brings 40 years of business, financial, and operational leadership experience to Vanguard’s Board, with more than 35 years at The Coca-Cola Company, one of the world’s most iconic organizations. He has served as the company’s CFO since 2019, became president in 2022, and has held a variety of positions during his career, including overseeing global finance operations and business operations in Asia Pacific and parts of Latin America.
Marco Fernández and Diego Castillo have joined Boreal Capital Management in Miami from UBS.
“As part of its ongoing commitment to growth in the wealth management space, Boreal Capital Management LLC, based in Miami, has hired Marco Fernández and Diego Castillo,” reads the statement accessed by Funds Society.
The bankers, with over 20 years of experience, specialize in high-net-worth individuals and families in Mexico.
The team, which joins the firm with offices in Spain and Zurich, has also worked at Citi and J.P. Morgan.
According to the firm’s information, it is expected that this team’s investment advisory relationships “are expected to substantially move the needle of Boreal’s total assets under management and gross revenues during 2024 and beyond.”
Additionally, the statement adds that the arrival of this duo strengthens and deepens the firm’s commercial roots in the Mexican market.
Boreal expects to increase its assets under management by 25% during 2024 and continue with double-digit growth in consolidated net profit, concludes the firm’s statement.
Jimmy Ly has been named the new Senior Vice President Offshore of Amundi US, the fund manager said Thursday in a statement accessed by Funds Society.
Ly has more than 20 years of experience in the financial services industry. Previously, he was CEO of Tigris and spent four years as Executive Director, Head of US Offshore & Latin America at Robeco.
In addition, he also worked for 14 years for Pioneer Investments and nearly four years for Merrill Lynch.
He will be in charge of coverage of certain parts of the Florida offshore market and the entire California offshore market, according to the statement accessed by Funds Society.
The Securities and Exchange Commission announced that Nathaniel H. Benjamin has been appointed the Director of the Office of Minority and Women Inclusion (OMWI). Benjamin will join OMWI from AmeriCorps, where he is the Chief Diversity and Inclusion Officer.
“I welcome Nate to the SEC in the leadership role as Director of the Office of Minority and Women Inclusion. Nate brings deep experience to the Office, having led various workforce development and employee engagement programs throughout two decades in public service,” said SEC Chair Gary Gensler and he thank Allison Wise, OMWI’s Deputy Director, has served as Acting Director of the Office since October 2023.
Benjamin joined AmeriCorps from the Department of Education, where he was deputy chief human capital officer and worked as a change strategist and executive leader for the agency’s operational functions. He was also the managing executive for the department’s diversity, equity, and inclusion program and led the agency’s Diversity and Inclusion Council.
Benjamin previously was the human capital director and deputy chief human capital officer at the Office of Management and Budget, where he directed the human capital strategy, workforce development and employee engagement initiatives, and the diversity and inclusion plan. He was also the deputy human resources officer for the T Family Bureaus at the U.S. Department of State, where he led the civil service staff for three bureaus supporting its arms control and international security missions.
Over a 24-year career, Benjamin has served as a noncommissioned officer in the U.S. Air Force, a civil servant for the Department of Defense, and an adjunct instructor at Trinity Washington University and the Art Institute of Washington. Mr. Benjamin is a certified professional coach and executively trained in strategic diversity, equity, and inclusion management through Georgetown University. He has received several awards for his superior leadership and notable results as a federal human resources change agent in diversity, equity, and inclusion programs. He has an M.B.A. from Johns Hopkins University, an MA from the University of Baltimore, and a B.A. from the University of Maryland Eastern Shore.
“I am honored to join the Securities and Exchange Commission as the Director of the Office of Women and Minority Inclusion,” said Nathaniel Benjamin. “I will use my experience to address challenges and barriers and strategically lead the Office. I look forward to working with the Commission to further equity and opportunities for all SEC stakeholders.”
Wise joined the SEC in June 2021. Before that, she led 60+ federal partners as the Director of Diversity and Inclusion at the U.S. Office of Personnel Management. She also served as the inaugural Director of Diversity and Inclusion at the National Archives and Records Administration. Wise has held several advisory roles on Federal DEI Councils and was the co-founder of the Federal Interagency Diversity Partnership. She holds a Bachelor of Arts in Finance from the University of Maryland Robert H. Smith School of Business and Executive Certifications in Strategic Diversity and Inclusion Management from both Georgetown University and the Harvard Kennedy School.
Higher-for-longer rates and approaching maturity walls will lead to an up-tick in high-yield and leveraged-loan defaults, including distressed debt exchanges and corporate bankruptcies, supporting the need for liability management and restructuring services from advisory firms, Fitch Ratings says.
Restructuring and advisory activity have historically counterbalanced each other, with a rise in restructuring activity often partially offsetting lost M&A revenue during a down cycle. That relationship, however, has broken down several times since the global financial crisis. Bankruptcy levels during the pandemic were abnormally low, as businesses accessed financing and capital at low rates, often paired with government stimulus. Additionally, in 2022-2023 low M&A volume driven by rate hikes, economic uncertainty and wide bid-ask spreads was not accompanied by meaningfully increased default activity.
In response to slow volumes in both M&A and restructuring, advisory firms have sought to broaden product and service offerings to diversify revenues and enhance earnings stability through different market environments. These include expanded financial sponsor coverage, private capital markets and fundraising, shareholder strategic advisory and special purpose acquisition companies (SPACs). Some firms also have wealth management businesses, which provide more stable management fees independent from transaction volumes.
Still, restructuring activity is expected to grow as bankruptcy filings continue to rise toward pre-pandemic levels, as protracted higher-for-longer interest rates and refinance risk from approaching maturities add strain to distressed borrowers. Overall corporate bankruptcy filings surged by 40% to 18,926 in 2023, normalizing from 13,481 filings in 2022, but remain around 18% below the pre-pandemic average from 2016 to 2019.
The trailing twelve-month (TTM) high-yield default rate edged up to 3.8% in March from 3.7% in February, according to Fitch’sU.S. Distressed and Default Monitor: April 2024as eight issuers defaulted on their LL or HY debt. Distressed debt exchanges (DDEs) affected more than $9 billion of loans and $7.9 billion of HY debt, or 82% and 90%, respectively, of total March default volume.
Fitch is estimating 2024 default rates of 3.5%-4.0% for leveraged loans (LL), and 5.0%-5.5% for high yield (HY), up from 2023 default rates of 3.3% for leveraged loans and 2.8% for HY.
The number of announced distressed debt and bankruptcy restructurings rose by 124% to 280 in 2023 from 125 in 2022, suggesting that bankruptcies will continue to rise into 2024. The restructuring value increased from $142 billion in 2022 to $205 billion in 2023. Completed restructurings rose 134% to 164 deals in 2023 from 70 in 2022, but total value fell by 21%.
Fitch’s sector outlook for independent advisory firms is neutral for 2024, as we expect M&A volume to gradually increase with advisory earnings currently at cyclical lows and cash flow leverage at elevated levels. Revenues should improve due to increased restructuring activity, even absent rate cuts, or with the expected resumption of M&A activity.
Tampa, Florida, is the best city to invest in short-term rentals, while San Jose, California, is the riskiest short-term rental market in America, according to a new study from Clever Real Estate, a St. Louis-based real estate company, in collaboration with Rabbu.com, a Charlotte-based short term rental investment platform.
The study analyzed metrics such as median home prices, occupancy rates, and changes in property values to rank Airbnb investment markets across the U.S.
Tampa stands out with a 71.6% property value increase over the past five years — 55% higher than the median city in the study. The metro area boasts 16,020 property listings, triple the median, a 44.8% Airbnb occupancy rate, and $52,705 average annual Airbnb revenue.
The top 10 cities to invest in short-term rentals are:
Tampa, FL
Orlando, FL
Jacksonville, FL
Boston, MA
Miami, FL
Buffalo, NY
Columbus, OH
Chicago, IL
Providence, RI
Kansas City, MO
Meanwhile, San Jose is the worst short-term rental city, with a median home sale price of $1,447,955, more than four times the average. San Jose has just 1,296 listed properties, a whopping 76% less than the median, leading to the lowest Rabbu return on investment score in the nation.
The 10 worst short-term rental markets are:
San Jose, CA
Birmingham, AL
San Antonio, TX
Houston, TX
Sacramento, CA
Raleigh, NC
Riverside, CA
San Francisco, CA
Oklahoma City, OK
Pittsburgh, PA
Additionally, Clever surveyed 1,000 Americans and found that 76% have a positive view of Airbnbs. About 60% say short-term rentals are nicer than hotels, and 67% say they’re more comfortable.
However, nearly all respondents (96%) saw downsides to short-term rentals, including misleading property descriptions, a lack of on-site help, and safety concerns.
Only 44% see Airbnbs as safer than hotels, a concern likely amplified by increasing crime rates.
International wealth advisor Cristina Acosta recently joined Bolton Global Asset Management, the registered investment adviser affiliate of Bolton Global Capital.
With a career spanning more than 25 years managing ultra-high net worth individuals and families from Latin America, and hundreds of millions of assets under advisement, Acosta has developed an exemplary boutique investment advisory practice serving family offices and notable international clients, the firm said.
“Cristina’s experience, dedication to holistic investment advice and client-centered approach, make her a perfect fit for our team of highly successful financial advisors. We look forward to watching Cristina further expand her business on Bolton’s platform.” said Bolton’s CEO Ray Grenier.
Acosta has branded her independent investment advisory practice as 5E Wealth, focused on wealth and investment management services with an integrated service model and unique approach to wealth consulting. Acosta also plans to continue developing more educational programs for women investors under her 5E WealthLab brand, in collaboration with other professionals in the industry.
Prior to joining the Bolton group, Acosta held senior-level positions at prominent international wealth management firms like Crescendo Group from Geneva, Boreal Capital Management in Zurich, served as Senior Private Banker at UBS Wealth Management Geneva, and as Jr. Banker at J.P. Morgan Private Bank, New York. Acosta’s career has taken her to live and work in tier-1 banking and finance communities such as Boston, Luxembourg, New York, Geneva, Zurich, and most recently, Miami.
Acosta holds a Bachelor of Science degree in International Business and Finance from Northeastern University in Boston, Massachusetts, where she graduated Cum-Laude. She further holds a Series-65 license and certificates in Circular Economy and Sustainability Strategies, from University of Cambridge, and Women Leaders Activating Change, from Babson College
Acosta is based at Bolton’s Miami office located at the Four Seasons Tower on Brickell Avenue.
An integral member of Acosta’s team worthy of mention is Daniela Emanuele. Originally from Argentina, Emanuele joins as acting Chief Operating Officer and Director of Client Services for 5E Wealth, bringing with her more than 20 years of experience in wealth management and private banking in the Latin America region. Before joining 5E Wealth, Emanuele worked at investment advisory boutiques located in Miami, where she was instrumental in managing operations and overseeing client relationships. Prior to this, Emanuele worked at EFG International and Credit Agricole as a relationship manager and at Royal Bank of Canada Private Bank (RBC), where she started her career in 1999.
Emanuele holds a Bachelor’s Degree in Business Administration with a minor in International Business from Florida International University (FIU). She holds a Series 65 license and a FLA Health and Life and Annuity insurance license in the state of Florida.
An integral member of Acosta’s team worthy of mention is Daniela Emanuele. Originally from Argentina, Emanuele joins as acting Chief Operating Officer and Director of Client Services for 5E Wealth, bringing with her more than 20 years of experience in wealth management and private banking in the Latin America region. Before joining 5E Wealth, Emanuele worked at investment advisory boutiques located in Miami, where she was instrumental in managing operations and overseeing client relationships. Prior to this, Emanuele worked at EFG International and Credit Agricole as a relationship manager and at Royal Bank of Canada Private Bank (RBC), where she started her career in 1999.