However, it is worth noting that not all investment strategies in the secondary market are the same or have the same risk/return profile. Altamar offers an approach centered on attractive returns with minimum risk and a permanent focus on capital preservation, through a niche strategy, an appropriate structure, and proven experience based on discipline and analytical rigor.
For a long time the secondary market represented a residual percentage of global Private Equity activity, responding to specific liquidity needs from the seller side, and with a fundamentally opportunistic approach from the buyer side.
However, during the last decade, and especially in recent years, this market has experienced major development. It has become a more mature and transparent market, where sellers come to reorganize their portfolios and meet regulatory requirements. Similarly, buyers are beginning to perceive it as a tool that helps them to complement investment strategies in the primary market, or start alternative assets investment programs in a more accelerated manner.
Provided that the investment strategy in the secondary market is good, the acquisition of “mature” funds with high visibility not only allows investors to shorten the investment period, but also mitigates J-curves and improves the portfolio risk/return profile.
Across all its funds the Altamar Group has developed a secondary market investment strategy with a very selective profile and a flexible approach that is always adapted to the economic cycle, with the clear objective of optimizing the risk/return ratio.
Deal sourcing is focused on small or medium size deals, mostly non-intermediated and in many cases with a certain complexity of structure. This is a different approach to the big fund managers in the market, who focus on high-volume transactions, usually originated through auctions and with returns coming from the use of leverage, which increases the investment risk.
The Altamar Group has proven experience in this market. We have been carrying out transactions complementarily to our primary investments, through all our vehicles, and particularly in an exclusive manner via the Altamar Secondary Opportunities IV Fund and Altamar Secondary Opportunities VII Fund. Consistently and across very different economic cycles, the Altamar Group has demonstrated its ability to source and access investment opportunities, being able to generate attractive returns for its investors in all funds.
In order to continue to provide our investors with the possibility of investing efficiently in the secondary market, and with a view to broadening our global reach in the market, Altamar Capital Partners has added to its investment team with the recent incorporation of a group of successful, well-established professionals with experience in the secondary market.