Private Markets Investment
Private markets attract a considerable amount of attention and enthusiasm for their performance, diversification effects, and growth of assets under management. Among the different assets classes:
Private equity benefits from the repositioning of assets and strategic evolutions (leverages buyouts)
Venture capital capitalizes on new technologies and trends (venture capital), fast growth companies (growth capital)
Private debt aims at providing investors a differentiated exposure to yield (senior/direct lending), possibly including capital gains (mezzanine debt) and to company restructuring (distressed debt, loan-to-own)
Private Real Assets
Private real assets (private real estate, private infrastructure, natural resources) offer different combinations of yield capital gains, inflation protection and downside protection.
Our private equity investment approach is based on a relative value analysis that looks at global sectors, industries and regions from a top-down perspective and identifies opportunities for investment in specific markets. Our local investment teams then work to identify growing companies within those specific markets that would benefit from our involvement.
Our Value Creation team helps to maximize value in portfolio companies by driving forward strategic initiatives and operational improvements. The team has specialist expertise across several sectors, enabling us to offer our portfolio companies outstanding partnership opportunities.
In regional private equity markets, our investment strategy is focused on two key themes:
- Platform investments and their growth potential: We believe platform investments in fragmented sectors capitalizing on macro-trends of growth are a winning strategy to continue generating attractive returns.
- Focusing on niche leaders: We identify niche leaders that can grow solidly in sub-segments of certain markets, even against an uncertain macroeconomic backdrop, due to their tailored, differentiated products.
We provide flexible financing for quality assets in stable industries, seeking an attractive risk/return profile and stable returns for the benefit of our clients. The financing we provide makes a significant contribution to a company’s long-term value creation. Our local investment teams provide debt capital across the whole debt structure, ranging from senior loans to mezzanine financing solutions.
In regional private debt markets, our investment strategy is focused on three key themes:
- Attractive niches: Attractive niches tend to include specialized companies operating in sectors the capital markets are not familiar with, for example, because of lack of research coverage. Through our Value Creation teams, we take the time to understand these companies’ business models and industry drivers and are thus able to capture attractive pricing.
- Creative structures: In some casesm companies may need flexible financing structures which are not underwritten by banks but arranged by a single institutional lender or on a club deal basis. We often focus on transactions in the middle market where we can play a leading role in structuring tailor-made financings to support companies and their specific business needs.
- Add-on financings: Financing add-on acquisitions of existing portfolio companies is a compelling way to leverage existing, trusted relationships. The existing relationship between company management and lender facilitates a fast and tailored debt solution given our insight into the business, its defensiveness and its drivers.
Private Real Assets
We invest in real estate based on a relative value analysis that looks at sectors and regions from a top down perspective and identifies investment opportunities in specific regions and sub-segments. Our investment teams then work to identify investment opportunities within those specific market segments.
In global real estate markets, our investment strategy is focused on two key themes:
Buying below replacement cost
- We target assets with low valuations located in rebounding markets that can be repositioned and then leased up by under-cutting market rents. These opportunities typically arise as a result of ineffective management, inadequate leasing or physical deficiencies – all issues that we can address.
“Buy, fix, sell“
- This approach typically targets older buildings in great locations that need owner-oriented asset management initiatives including capital expenditure, repositioning, lease-up and the implementation of building efficiencies to capture rental and pricing differentials.
Our venture capital investment approach is based on a relative value analysis that looks at global sectors, industries and regions from a top-down perspective and identifies opportunities for investment in specific markets. Our investment teams then work to identify growing companies within those specific markets that would benefit from our involvement.
Our Industry Value Creation team helps to maximize value in portfolio companies by driving forward strategic initiatives and operational improvements. The team has specialist expertise across several sectors, enabling us to offer our portfolio companies outstanding partnership opportunities.
We are specialized in Fintech, e-commerce, cybersecurity, media, logistics,
In venture capital, our investment strategy is focused on:
- Seeking growth linked to technology advantages: We focus on growth trends in technology-related products and services, and especially on companies that have developed proprietary technology that provides a competitive advantage as well as downside protection.