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Glaucus, page-33

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Old Engineer

4,859 Posts.

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30/03/18

20:03

Post #: 32145124
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Originally posted by Jimmy_C ↑

The progression from managing retail ("mug punters") to institutional funds is a very well-trodden path in funds management. It's almost necessary, in fact - institutions rarely back fund managers who don't have long track records of providing returns to investors, so it's almost a default that newly formed fund managers focus firstly on retail investors and/or HNWIs.

BLA reflects this trend - three years ago they had almost no institutional capital, and now it's 40% of their AUM and growing rapidly. I think looking at the historical composition of capital and deal structures risks missing the forest for the trees, to be honest - going forward, BLA will likely have the majority of its AUM in large institutional mandates, with lower fees than retail offerings - the lower fees will likely be offset by much higher AUM (a lot easier to scale institutional rather than retail capital).

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And institutional investors would not expect BLA to use more than the minimum necessary cash for any investments.

BLA Price at posting: $10.40 Sentiment: Hold Disclosure: Held
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