JPM expects rate cuts to boost Europe's private asset managers' earnings

Petershill Partners

13/08/2024 07:49

** J.P. Morgan remains constructive on European private
asset managers and expects the Fed's and ECB's interest rate
cuts to drive higher volumes of transactions resulting in higher
investment income
    ** "EQT  EQTAB.ST  is our top pick among the European
private markets asset managers, followed by ICG  ICGIN.L ,
Petershill  PHLL.L , and Bridgepoint  BPTB.L ", the broker says
in a note
    ** It upgrades Bridgepoint to "overweight" from "neutral",
flagging its attractive valuation, and raises 
its adjusted EPS estimates for 2025E and 2027E driven by higher
management fees 
    ** It also rates EQT, ICG, Petershill as "overweight"
    ** It cuts Antin Infrastructure Partners  ANTIN.PA  to
"neutral" from "overweight" citing its dependence on a single
asset class and flagship fund, and considering its slower
deployment pace compared to peers 
    ** The broker maintains its "neutral" ratings for CVC
Capital Partners  CVC.AS  and Partners Group  PGHN.S 
    
    
  

 (Charlotte Bawol)
 ((Charlotte.bawol@thomsonreuters.com))