Making Sensible Decisions on how to Invest.

Private Capital - How to capture secure returns

Balancing the need to help the global economy whilst targeting security of capital and returns

With something in the region of £7 Trillion forecast being spent and or lost from Governments around the world shoring up the various economies and populations during 2020 and 2021 Covid 19 pandemic the question of how companies begin rebuilding jumps to mind.

As ‘investors’ finding the home for our money in a way that provides some higher degree of security, depending upon individual risk profiles, whilst providing some surety of income becomes a challenge.

Private Equity firms are perhaps one option – for some a source of frustration, for many a force for good.   We suspect many of those will be calling for extra money having found themselves with portfolios of investments that are underwater, companies ‘furloughed’ because of the pandemic now requiring extra funding to support cashflow.   

These are not bad portfolios, just impacted by an extraordinary period of time.   Many of these portfolios will recover in the next 12 – 18 months and continue the good work they do stimulating investment in growth potential – the back drop to much of any countries growth and prosperity, as well as tax revenues.

But in the short term what’s to be done?

Hedge funds similarly have their place, but perhaps provide access to higher risk capital markets activities, including equities and foreign exchange.   These activities are well proven and with the right manager can provide exceptional returns.   But perhaps at this point the market is looking for higher risk participants.

The option we have looked at and found interesting for our clients, corporate and high net worth alike, are those that provide certainty of income and are perhaps underpinned by secured assets already known to be at a discount to market value.  Finally they must provide a well established and reasonably liquid route to divesting of the investment.

Finding quality opportunities such as these require a team with a particular skill, whether that’s buying office blocks or residential property.  Our view is that the former of these is going to suffer drastically as tenants require support in the form of rent reductions.

The opportunity for growth in this time would seem to exist for ‘distress’ focused investors spotting assets below market value.  Many maybe rubbing their hands with glee at the opportunities ahead.

Our own experience has led to the team at Berkeley House Capital, an FCA regulated Asset and Wealth Manager launch ‘The Yacht Bond’, a fixed yield corporate loan product.  T’he Yacht Bond’ builds upon our teams proven knowledge and activity within this market creating opportunities for positive fixed income returns.


The Yacht Bond.  Enjoy fixed income returns.

The Yacht Bond. Enjoy fixed income returns.

As always entering into any form of ‘investment’ requires due diligence.

It seems this again points to the benefits of utilising the services of a boutique regulated alternative asset managers who specialise in these types of opportunities, effectively providing some degree of increased assurance that investments, whilst not removing all the risk, are managed correctly.  Berkeley House Capital is one such boutique Company.  

If you are a Wealth Manager, IFA, Family Office or Finance Professional and would like to know more about our investment products and/or services, send us and email to arrange a convenient time to discuss.

If you would like to discuss any aspect of this note please feel free to email:  charlotte@berkeleyhousecapital.co.uk and one of the team will be very happy to arrange call with you.

 

www.berkeleyhousecapital.co.uk      
12 Hay Hill, Mayfair,
 London. W1J 8NR
United Kingdom
+44 (0) 207 863 7507

  

1. Berkeley House Capital is an Appointed Representative of Alternative Asset Management Ltd which is authorised and regulated by the Financial Conduct Authority (No. 450404). Not all of our activities are regulated by the FCA, further details are available from us on request.

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Neither this email nor any information contained within it constitutes investment advice or an offer or solicitation to sell in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction.  The material contained within is purely for information purposes and its accuracy cannot be guaranteed. Investments may go up or down in value and you may lose some or all of the amount invested. Past performance is not necessarily a guide for the future. Returns from investments are at risk in the event of any of the institutions who provide securities for these products default on their financial obligations. Any decision to invest should be based on the information contained in the relevant term sheet or prospectus (and any supplements there to) of the relevant product which includes information on certain risks associated with an investment. Under the General Data Protection Regulation (GDPR) (EU) 2016/679, we have a legal duty to protect any information we collect from you. Information contained in this email and any attachments may be privileged or confidential and intended for the exclusive use of the original recipient. If you have received this email by mistake, please advise the sender immediately and delete the email, including emptying your deleted email box.

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