Private Market Investments

Your entry into the universe of private market investments

A broadly diversified and robust investment strategy is mainly based on exchange-listed investments such as equities and bonds. However, investors who limit themselves solely to publicly traded companies and instruments respectively are missing out on interesting investment opportunities that often bring in above-average returns.

Private market investments – Private Equity, Private Credit, Infrastructure and Real Estate – can improve the expected returns of a portfolio while at the same time reducing volatility. This results 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.

Why invest in Private Markets?

• Expands the investment universe – Private markets give access to a broader investment universe including early stage and middle market companies as well as new technologies and add valuable portfolio diversification.
• Illiquidity premium – Private market investments have historically generated strong risk-adjusted returns. Better access to information, active management, inefficient markets, value creation initiatives and the use of leverage can enhance returns.
• Prevents panic selling – The illiquid, long-term nature of private market investments prevents panic selling during distressed markets and can protect investors from trying to time the market.
• Inflation protection – Private markets outperform other asset classes in high-inflation environments and can act as an inflation hedge within a diversified portfolio.

What are the challenges of private market investments?

• Access – The most attractive investment opportunities are often capacity constrained. To invest directly in private market funds, a minimum commitment of $5+m is usually required.
• Illiquidity – Private market investments are typically for the long-term and illiquid. Liquidity may only be achieved at substantial discounts.
• Portfolio construction – The deployment of capital takes many years, particularly when building a diversified exposure over multiple vintages. Reaching and managing the target allocation is usually difficult.
• Diversification – Private market investments should be diversified across multiple dimensions (investment type, vintage years, geography). Commitments must be made for several years.
• Performance dispersion – Due diligence and careful selection of investments are key given the large performance dispersion between “good” and “worse” managers.
• Cash flow management – Timing and size of capital calls and distributions are uncertain. Sufficient liquidity must be maintained and managed at all times.
• Blind pool risk – The portfolio investments of private market funds are not known in advance.
• Valuation – Private investments are valued quarterly and information is not publicly available.

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.

* simplified implementation possible

** majority redeemable within 6 months, full redemption may take 12 to 18 months

Source: Kaiser Partner Privatbank

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.