Picking The Wrong IFC Could Shut Off An Investment Manager's Fundraising

There are few things more disruptive to the investment management industry than instability. Financial institutions are experts in managing risk in their investments. One of the reasons they can achieve this is due to developed processes for anticipating and predicting events – they can rely on their models. Managers expect the same for their operations.

Structured finance, particularly collateralized loan obligations (CLOs), has remained a robust subsector of capital markets even during this year's intense volatility. However, American investment managers in this sector are largely unaware of the existential threat to this market beyond the tumultuous macroeconomic outlook. For many, there is a major disruption in business on the horizon, particularly for fundraising new securitized structures.