Private Market Investments

Exclusive access to an expanded investment universe

Your entry into the universe of private market investments

A broadly diversified and robust investment strategy is mainly based on capital market investments. However, investors who limit themselves solely to publicly traded companies are missing out on interesting investment opportunities that often bring in above-average returns. This is true not only in the area of start-ups and growth companies, but also with established companies as well.

One statistic illustrates how great this opportunity is – or rather, how enormous the universe of private market investments is: Nearly 90% of all US companies with more than USD 100 million in revenue are private companies (not publicly traded). The situation is similar in Europe: Less regulation and fewer disclosure requirements coupled with less pressure on the shareholders to quickly reach goals all contribute to the fact that more and more companies are remaining private for longer, or are choosing to leave the stock markets.

Private market investments can improve the expected returns of a portfolio while at the same time reducing volatility, thus resulting in a better risk-adjusted return profile.

Kaiser Partner Privatbank AG offers you a low-threshold, comprehensive, and exclusive private market investment solution that, up to now, has only been available to a restricted group of investors.

 

How do we define private market investments?

Private market investments are an umbrella term for capital investments that are not publicly available on a stock market. We invest in four different strategies:

  • Buyout strategies – equity investments in established companies
  • Credit strategies – debt capital investments in companies
  • Venture/growth strategies – investments in start-ups or growth companies
  • Real assets strategies – long-term investments in real estate, infrastructure, and natural resources

 

Furthermore, private market investments can be split up into various categories, allowing for further diversification.

  • Geographies
  • Company Size
  • Sectors
  • Fund Vintages
  • Investment Types
  • Fund Strategies

 

Private markets risk and return impact on equity/bonds portfolios | 1995 – 2020

Source: Hamilton Lane as of 31/10/2021

 

"Private market investments improve the risk-return profile of your portfolio."

Why invest in Private Markets?

  • Expands the investment universe – Private market investments offer investors the opportunity to invest in privately owned companies.
  • Illiquidity premium – Private markets have historically generated stronger risk-adjusted returns than global equities, global bonds and other asset classes.
  • Prevents panic selling – The illiquid, long-term nature of Private Markets prevents panic selling during distressed markets.
  • Inflation protection – Private Markets perform favorably compared to other asset classes, especially in high-inflation environments.

Growth of $1 | Private Equity vs. MSCI World

Source: Hamilton Lane as of 31/10/2021

 

What challenges await investors?

  • Access – Due to restricted capacity, certain investment opportunities are reserved for the biggest investors.
  • Scale – Investments in these funds often require capital commitments of at least USD 10 million.
  • Performance Dispersion – Due diligence and careful fund selection are the keys to success.
  • Time & Experience – Private market investments are complex and involve a significant amount of time and high costs.
  • Managing Cash-Flows – Capital calls and payouts last for several years.
  • Diversification & Perpetuity – Investments must be diversified across different dimensions and capital commitments must be made over several years.
  • Illiquidity – Investments are typically long-term and illiquid.

 

 

Who are private market investments suitable for?

  • Investors with a long investment horizon
  • Investors who want to further diversify their investments
  • Investors who want to profit from the excess returns of private market investments
  • Private individuals and legal persons

 


Our Offer

Our offer for you

  • We can advise you on the topic of private market investments and determine whether or not this type of investment works within the context of your portfolio.
  • We offer you exclusive access to top-quality managers with exceptional track records.
  • We do not require high minimum volumes.
  • We offer innovative, tailor-made solutions for financing or monetizing your private market investments.
  • We provide comprehensive service: We handle all of the administrative tasks concerning your private market investments.
  • We offer you suitable access to secondary markets.

"Investors who limit themselves solely to publicly traded companies are missing out on interesting investment opportunities that often bring in above-average returns. "


Contact

We would be happy to assist you

Would you like to learn more about our private market investments offer? Then get in touch with us.

 

Roman Pfranger
Member of the Executive Board, Head Private Banking
Claudio Fuchs
Head Investment Advisory