In general terms, investment in private equity and other alternative assets may be carried out in three ways:
in one or more unlisted company.
which in turn invest in a portfolio of unlisted companies. By investing in funds, investors enjoy greater diversification than in direct investment.
which invest in a portfolio of specialized funds. By investing in funds of funds, investors benefit from comprehensive diversification, both in terms of geographic, company size, sector, or economic cycle risk, plus fund manager risk.
The degree of complexity in terms of both decision making and the structuring and subsequent monitoring of the investment, risk/return profile, portfolio diversification, and the skills needed to successfully implement any of these methods, is different in each case. It is therefore essential that investors make a preliminary detailed analysis as to what their objectives are, bearing in mind the skills they have.
As a result of the application of our investment philosophy, in which long-term vision, preservation of capital, consistency of returns, and risk diversification form part of the Group’s DNA, we choose funds of funds, or managed accounts, as the best way to manage our investments, by the methodical construction of a portfolio, risk diversification, return optimization, and maintain preservation of capital as a basic aim.