Private Equity Advisory for institutional investors and family offices with a focus on Europe and the emerging markets
Portfolio allocation

Private equity returns have been shown to outperform listed assets by around 3% to 7% p.a. in the long-term. Our focus is squarely on the maximisation of sustainable, long-term returns before the realisation of short-term profits that can be achievable in more liquid asset classes (subject to considerable volatility). A well thought-out portfolio allocation is absolutely key for investment success and just as important as the selection of the individual investment projects.

We prepare the optimal portfolio allocation for new investors in the asset class private equity after an intensive dialogue. We analyse the client’s overall portfolio, their risk/return profile and goals and their expectations for macroeconomic and financial market developments. On this basis we define a strategic portfolio allocation including the level of the private equity allocation, the annual level of commitments and the number of investments every year.

In a second step, we work out the tactical portfolio allocation to geographies, investment styles, target fund sizes, and investment format. Target investments can comprise funds-of-funds, funds, co-investments or secondary transactions. Finally, we develop a concrete timeframe with the client for the execution of the investment programme that marries their goals with the availability of attractive investment opportunities in an optimal way.

For clients who have already invested in private equity we work out proposals for an optimisation of their existing investment portfolios and advise them on restructuring their holdings.

In all cases we believe in making these processes as transparent as possible for our clients to enable them, if this is their goal, to build-up in-house expertise in the medium term.