We consider private equity an important asset class that constitutes a hedge against inflation and market volatility while generating significantly higher long term returns than equity markets.
In economic downturns, private equity funds can benefit from investing in sound businesses, at attractive valuations, due to their need for capital.
The firm mainly focuses on two types of private equity in developed markets: corporate acquisitions and real estate, which can generate recurring income for investors.
Its illiquid nature and long term duration (7-10 years) make private equity an asset class only fit for strategic investors. The inherent risk is rewarded by higher than average returns, thus making it a strategic asset class to be used diligently in terms of diversification.
In the selection of private equity funds, we prefer to restrict ourselves to the leading names in the industry with a proven track record and an established management/investment process. Within this perimeter, we also consider funds that are industry or geography specific, ideally both. As a further precautionary measure, we aim to select funds that can benefit from economic downturns during the investment period.
Real estate can enhance the risk and return profile of an investor's portfolio, offering competitive risk-adjusted returns. The real estate market is also characterized by low volatility, especially compared to equities and bonds.
Another benefit of investing in real estate is its diversification potential. In effect, real estate has a low, and in some cases, negative correlation with other major asset classes.
The inflation hedging capability of real estate stems from the positive relationship between GDP growth and demand for real estate.
Our real estate strategy revolves mainly around two concepts:
Our preferred strategy is the 1 property / 1 investor approach. We assist investors in selecting a single property with a single solid tenant and a long lease in a developing location in a stable and developed country.
our preferred strategy remains the 1 property / 1 investor approach. However, from a practical point of view and if the market does not provide opportunities of the required size and criteria, we can then consider dedicated real estate funds managed by international managers with a proven track record. These funds provide access to smaller placements in a large number of properties that have been carefully selected and that are managed professionally.
Venture capital is essentially investing in start-ups with a strong growth potential in exchange for an equity stake. The focus of these start-ups is mainly technology which is either the core activity or the main vehicle propelling it (e.g. Alibaba, Airbnb, Facebook, Twitter, etc.).
Venture capital is not considered an investment in financial securities, but rather a collective direct investment. It has a higher risk profile than private equity and most other asset classes because the risk of failure by start-up companies is greater than the likelihood of success. This higher risk is rewarded by a much higher return when the investment is successful.
In order to mitigate risks and limit the potential loss to investors, we limit investments to small amounts in a large variety of venture capital opportunities. When successful, the capital gain in venture capital can be several multiples of the invested equity. This is what makes venture capital worth it.
We provide our clients with access to several venture capital investment opportunities in North America and Europe across different development stages and industry sectors.