Record plc has reached an important stage in its diversification strategy after subsidiary Record Asset Management GmbH became cash flow positive.
The development marks a shift for Record Asset Management, or RAM, from its initial investment phase towards a greater focus on growth and profitability. For the wider Group, it provides clearer evidence that its expansion beyond traditional currency management is beginning to develop into a more established part of the business.
Record manages USD 122 billion of assets for institutional clients including pension funds, foundations, sovereign institutions and asset managers. The Group has historically been best known for currency management, but in recent years it has been building additional investment capabilities intended to broaden its revenue base.
RAM is central to that strategy. The business received its BaFin licence in 2022 and has since developed investment strategies across infrastructure equity, private credit, real estate and absolute return.
Becoming cash flow positive is significant because it reduces the subsidiary’s reliance on continued investment from the wider Group and moves RAM closer to contributing financially on a more sustainable basis. Record has made clear that sustainable profitability remains the next objective.
The business has also expanded geographically, establishing operations in Germany, Switzerland and Hong Kong. This gives RAM access to institutional and private clients across Europe and Asia and supports Record’s plan to build a more internationally diversified investment platform.
Record plc (LON:REC) develops bespoke, high-quality, sophisticated solutions for institutional investors, a unique offering stemming from Record’s knowledge and expertise gained from its core currency hedging markets.
