09. Jun 2022
The Scope rating agency once again credited INTREAL with an “AA” score in a third-party AIFM rating, thereby reaffirming the company’s very high quality and competence. By doing so, Scope upheld its initial rating from March 2021, which represented the first-ever Scope rating of a third-party AIFM for real estate.
Among the definitive reasons for the superior assessment were once again the prominent market position of INTREAL as Germany’s biggest third-party AIFM for real estate, as well as the company’s growth at a steady and significant pace. In addition, the agency commended INTREAL for the high degree of professional expertise and consulting competence of its specialised subsidiaries, and for its highly specialised IT structures as basis for a high service quality. One caveat that Scope reiterated concerned a certain concentration risk of the client base to which the company is exposed because its five largest accounts (aggregated on the asset manager level) make up 46 percent of its revenues, with the largest manager alone accounting for 13 percent of the revenues. However, a look at the level of the individual funds qualifies the concentration risk because the single-largest investment fund contributes merely five percent to the revenue total. Overall, INTREAL administrates 278 funds of nearly 70 different fund partners, suggesting broad-based diversification.
Significantly Expanded of ESG reporting and its Advisory Services
Scope gave INTREAL credit for the fact that the company exclusively provides fund administration services and that it launches no investment funds of its own, effectively reducing the potential for conflicts of interest. The analysts mentioned that the company significantly expanded both its ESG reporting and its advisory services for its fund partners, and that it published its first own sustainability report in March of 2022.
Michael Schneider, Managing Director at INTREAL, commented: “We are pleased to say that we were able to live up to our very good initial rating from last year with a repeat performance in 2022 despite a more and more challenging market environment. Having received an very good rating in March 2021, we made it our business to ensure that the specifications and extended requirements that it applied would also be met for the follow-up rating. In fact, rather than simply reaffirming last year’s assessments on every count, we managed to meet target benchmarks that go even farther. We consider this a sound starting basis for securing the excellent rating the next time around, and for reaffirming our service commitment vis-à-vis our clients in a sustainable manner. At this point, let me express our heartfelt gratitude to our staff who made this rating possible and who have every right to be proud of it.”
Download press release as PDF.