11.12.2024

Almost All Year-End Bonuses to Rise

11.12.2024
Almost All Year-End Bonuses to Rise

Johnson Associates projects year-end incentives to be higher across almost all sectors.

Projections: Traditional asset management boosted by market appreciation and active ETF inflows. Hedge funds rise on inflows and strong performance. Investment banking higher led by equities trading and debt underwriting. Small to mid-sized illiquid alternatives flat to up modestly while largest funds up more despite fundraising challenges. Geopolitical issues largest risk variable into year-end.

Alternatives are a strategic priority for many financial services firms

  • Many firms, including those who did not traditionally offer alternatives, continue building out alternatives strategies
    ▪ Institutional and retail investor demand for alternatives growing
  • Alternatives have higher fee levels and provide diversifying revenue streams
  • Private credit “hottest” sector within alternatives
  • Private credit proliferation across multi-strat alternatives, traditional asset managers, large banks, and insurance companies
  • Banking regulation shifted momentum to private credit firms
    ▪ Some major banks have formed partnerships with alternatives firms to scale direct lending capabilities
  • Compensation pressures as talent market highly competitive

The full report can be read here

Source: Johnson Associates


Related articles

  1. The board is conducting a thorough process to identify the best replacement.

  2. The fund is Morgan Stanley Investment Management's first evergreen private equity offering.

  3. Source Expands ETFs in Germany

    Germany’s first “Blockchain Pfandbrief”, issued by Berlin Hyp, is KfW’s first DLT-based investment.

  4. Modern technology enables traders to configure their workflows rapidly and efficiently.   

  5. Work is underway to extend retail access to private markets in model portfolios & target date funds.