Clipper Acquisitions Corp.

The positive outlook reflects S&P Global Ratings' expectation that we could upgrade the company in the next 12 months if leverage is sustained close to 1.5x to offset the concentration risk in the business and if investment performance and net flows remain strong. We could revise the outlook back to stable during the next 12 months if leverage increases above 2.0x, or if the company's investment performance or net flows weaken. The average AUM will experience a high-single digit percent growth in 2021, and remain relatively flat in 2022. The average fee rates will remain relatively stable during 2021, and 2022. In line with our projected average AUM and average fee rates, we anticipate revenue growth will have a high-single

...AUM growth continues to exhibit strong momentum. Clipper Acquisition Corp.'s AUM grew by approximately 14% in 2020, to $248 billion, driven by $11 billion in net inflows and meaningful market appreciation. Leverage remains below the upside trigger. Clipper ended 2020 with debt to adjusted EBITDA slightly below 2.0x, in line with the previous year. Our current upside trigger is for the company to remain comfortably below 2.0x on a sustained basis. The business remains largely concentrated in fixed-income strategies. As of March 31, 2021, around 85% of AUM was in fixed-income strategies and the Total Return Bond Fund represented more than a third of total AUM. Outlook: Positive...

Full Report