Traditional equity and bond portfolios with a 60/40 split can no longer be relied on to protect your wealth. We are certain that the negative correlation between equity and bond prices is broken and the concept of diversification needs to be adjusted. Consequently, our solution is to broaden the concept of diversification and include private equity into the asset allocation as it lowers the portfolio correlation to stock markets. Therefore, private equity investments strengthen portfolio returns in times of turbulent equity markets and ultimately preserve your capital.
Besides reducing risks, private equity investments have the benefit to add substantial upside potential to your portfolios. Investors receive a premium due to the illiquidity and lengthy investment term of these investments. On the liquid side, over-the-counter traded assets are more likely to offer inefficient market investment opportunities. We devote our professional time and expertise to identify such opportunities and achieve risk-adjusted and market-uncorrelated returns for our clients.