UBS has raised concerns about UK-listed Record plc’s aggressive expansion into private markets, a move that has added strain to the firms’ relationship, according to CryptoBriefing as cited by Techub News. The partnership between the two sides began in 2021 and previously helped Record’s emerging market fund assets surpass $1 billion.
UBS warned that private credit default rates could reach as high as 15% under an adverse market scenario. The bank has also advised wealth management clients to reassess their allocations to private markets, reflecting growing caution around risk in that segment.
Record’s recent financial results showed mixed trends. Assets under management rose 14% to $114.6 billion, but revenue fell 4%. The figures suggest that while the company has expanded its asset base, the economics of its newer business lines have yet to keep pace. The report points to increasing tension between asset growth and profitability as Record broadens its presence in private market strategies.
UBS is concerned about UK-listed Record plc’s aggressive move into private markets, according to CryptoBriefing in a report cited by Techub News. The growing unease over private credit risk has also strained the relationship between the two firms.
The partnership began in 2021 and had helped Record’s emerging market fund assets top $1 billion. UBS warned that private credit default rates could rise to as much as 15% in an adverse market scenario, and it advised wealth management clients to reassess their private market allocations.
Record’s latest earnings showed assets under management increased 14% to $114.6 billion, while revenue fell 4%. The results indicate that the economics of its newer business lines have not kept up with asset growth.
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