Carol Yu

I am delighted and excited to announce our new joint venture with KKR which will provide Puma Property Finance with £500 million of additional firepower to facilitate development and stabilisation loans to fund best-in-class residential, Build-To-Rent and student accommodation schemes. The partnership will target loans of £20 million to £75 million, supporting experienced developers delivering high-quality projects in these supply-constrained markets. KKR’s global standing is second to none, and their backing is a clear endorsement of the strength of the business we have built at Puma. This joint venture provides access to attractively priced, scalable capital to support best-in-class developers across the UK living sectors. It complements our existing capital lines well and means we can support more high quality developments with the service levels, flexibility and human touch that people have come to expect from Puma. Please do get in touch to discuss any potential funding opportunities - we can't wait to start putting this capital to work! #developmentfinance #propertyfinance #newfundingline #comeandtalktous #openforbusiness Puma Capital Group Puma Investments

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UK Budget 2026 — CLO Market Impact Analysis Chancellor Rachel Reeves’ Budget (12:30 GMT) introduces a fiscal mix that ranges from mildly contractionary to potentially redistributive. The transmission into UK CLOs runs through: Macro growth expectations Consumer leverage resilience Corporate earnings + default expectations Sterling rates vol, which drives liability spreads and refi/reset optionality Bank risk appetite & repo funding We evaluate the impact under three scenarios. 1. SCENARIO MATRIX — UK CLO OUTCOMES A. Baseline Scenario (70% probability) Mild fiscal tightening; threshold freezes extended; moderate tax measures; no major spending shock. CLO Market Impact Defaults: stable; maybe a tiny uptick but nothing structural. AAA spreads: 2–4 bps tighter as rates rally and vol subsides. AA/A: mild tightening 5–10 bps; demand from insurers persists. BBB/BB: unchanged or 5 bps tighter (carry remains attractive). Equity: improved optionality on refi/reset into lower rates. Rationale Rate rally → lower liability costs → CLO arbitrage strengthens. Lower volatility → more refi supply but not disruptive. Positioning Recommendation → Add AAA and AA UK CLO tranches; selectively add BBs for carry. Best risk-adjusted entry: AA / A short WAL notes with strong OC cushions. Representative ISINs (illustrative): AAA: XS2598351871 (typical UK CLO AAA senior) AA: XS2579123304 BBB: XS2448885138 Secondary Market Expectation Better bid for short-WAL mezzanine. New-issue prints likely 5–10 bps tighter week-on-week. B. Hawkish Fiscal Scenario (15% probability) Larger revenue increases + partial welfare expansion = growth concerns + mixed deficit path. CLO Market Impact Defaults: higher probability of marginal increase in 2027–28, especially in consumer-linked and cyclical sectors. AAA: flat to +3 bps wider (minimal credit impact). AA/A: 5–12 bps wider. BBB: +20–30 bps wider (β-to-macro). BB/B: +40–80 bps wider (risk-off flows). Rationale Lower growth → increased downgrade pressure. Bank risk appetite softens → mezz trading liquidity deteriorates. Positioning Recommendation → Stay long senior CLO risk, avoid mezz. Rotate from BBB/BB into AAA/AA. Use the rally in gilts to hedge systemic credit beta. Representative ISIN behaviours (typical): BBB mezz (e.g. XS2497984413) likely drops 1–2 points. BB tranches drop 3–5 points on convexity + lower demand. Secondary Market Expectation Reduced refi/reset activity. More BWIC supply in mezzanine and equity buckets. C. Stimulus Scenario (15% probability) Two-child cap removed + targeted spending without full revenue offsets → higher deficits. CLO Market Impact Defaults: marginal increase (inflation + wage pressure squeeze). AAA: 3–7 bps wider AA/A: 10–20 bps wider BBB: 25–40 bps wider BB/B: 60–100 bps wider (high-beta blowout) Scenario 2 + Scenario 3 (TBC) Happy CLO constructing — may your AAAs be tight, your BBs resilient, and your equity always in the money.

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🚨 Nuveen, a TIAA company, has agreed to acquire Schroders for £9.9bn, creating a combined firm with $2.5tn in assets under management. 🚨 Nuveen will pay 590p per share in cash, plus a potential 22p dividend, representing a 29% premium to Schroders’ previous closing price and valuing the deal at 17x operating profit. The transaction already has backing from 42% of shareholders, including board members and the founding Schroders family. Schroders’ brand will be retained, with London serving as the group’s main headquarters outside the US. Nuveen highlighted Schroders’ strong heritage and brand, while Schroders CEO Richard Oldfield described the deal as a scale-driven partnership aligned on culture and values. The takeover comes amid industry pressure to gain scale and expand into private markets. Despite speculation about whether Schroders’ £824bn AUM was large enough to compete globally, there had been no prior sale rumours. Analysts called the bid a “bolt-from-the-blue” and viewed it as a strong endorsement of traditional asset management. Notably, the announcement made no reference to cost synergies. Alongside the deal news, Schroders reported strong annual results: adjusted operating profit rose 25% to £756.6m, net inflows reached £11.2bn, and AUM increased to £823.7bn. Shares rose 29% in early trading to around the offer price. https://lnkd.in/gV-pZh-a 

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🚨 Paul Hastings has added more talent to its fund finance bench in London, hiring Stephenson Harwood partner Daniel Margolis. Fund finance has become one of London’s hottest lateral markets this year as private capital firms increasingly look for new ways to manage liquidity at the fund level. More here: https://lnkd.in/ezrtv5jA

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Turquoise Luminex is now live. More control. Less market impact - a new manual conditional order type built by the Buyside for the Buyside, enabling greater control over large block orders and reduced market impact. Ben Coward-Talbott, Goldman Sachs, said: “We are pleased to be supporting Turquoise Luminex and our Buyside clients as a Nominated Broker, enabling trading participants to have greater control over their larger block orders and to seek liquidity with reduced market impact by self-directing orders to Turquoise Luminex. A huge thank you to our Buyside and Sellside partners for their support in making this milestone possible. Learn more: https://lseg.group/4a0nwra #TurquoiseLuminex #DarkTrading #MarketInnovation LeveL Markets, LLC

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UK IPO activity is expected to rise in 2026 after a subdued Q3, signaling a potential rebound for the market.  https://lnkd.in/eh5FQ9VB

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Latham: Three Senior Real Estate And Structured Finance Partners Set To Join London Team: Latham & Watkins announced real estate finance partners David Oppenheimer and David Varne, along with structured finance partner Lucy Oddy, will join the firm’s London office from A&O Shearman, bolstering Latham’s real estate and structured finance capabilities in the City and across Europe. The post Latham: Three Senior Real Estate And Structured Finance Partners Set To Join London Team appeared first on Pulse 2.0.

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How long does it take to remove a GP? The skills required to source and execute strong investments are fundamentally different from those required to restructure a distressed portfolio — and LPs who conflate the two risk compounding an already difficult situation, according to James O'Donnell, a Partner at Gibson Dunn. "A good GP that makes good deals isn't necessarily the right person to be restructuring a portfolio that's run into difficulties. We're not necessarily talking about bad actors — we can also be talking about poor liquidity, poor performance, just bad luck in the wider market," O'Donnell tells Liquid Courage. This is an excerpt from a Liquid Courage live webinar titled "GP Transitions: When and How to Install a Replacement Fund Manager," featuring James O'Donnell of Gibson Dunn, Joncarlo Mark of Upwelling Capital Group, and Eric Green of Upwelling Capital Group. Access the full episode, full transcript and searchable library of content at the Liquid Courage Substack: https://lnkd.in/eAAhik3C #secondarymarket #privateequity #liquidcourage #privatemarkets

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