Understanding Zurich Alternative Asset Management and Private Markets

Zurich alternative asset management and private markets are complex and often misunderstood concepts, even among experienced investors. Private markets encompass a wide range of investment opportunities, including private equity, real estate, and infrastructure.

These investments are typically illiquid, meaning they can't be quickly sold for cash, and are often more volatile than traditional public market investments. Private markets are also often less regulated than public markets, which can present unique risks and opportunities.

Zurich is a global hub for alternative asset management, with many prominent firms calling the city home. The Swiss financial system's stability and reputation for prudence make it an attractive location for investors seeking to manage private markets.

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Investing in alternatives can be a smart move for your portfolio, as it can reduce volatility and make it more resilient.

Alternative investments have lower sensitivity to market movements, which means they can help stabilize your portfolio during turbulent times.

Diversification is key to building a strong portfolio, and alternative investments can play a crucial role in enhancing diversification due to their low correlations with traditional investments.

By incorporating alternatives into your portfolio, you can create a more balanced and secure financial foundation.

This can be especially beneficial for investors who are looking to reduce their overall risk and create a more stable financial future.

Private markets strategies are becoming increasingly popular, with thousands of funds available and more launching every day. This has created a challenge for investors to navigate the growing market.

Investing in private markets can provide attractive returns and diversification, making it an attractive option for many investors. According to Franklin Templeton, their Alternatives platform offers a diversified platform of alternative asset capabilities, including private equity, private credit, and real estate.

Investors can also benefit from private equity secondaries, which provide a way to gain private equity exposure and diversify their portfolios. A secondary strategy can offer broad diversification, potential for earlier cash returns, and reduced investment risk.

Here are some key benefits of private equity secondaries:

Investors can also explore late-stage venture capital, which has become an attractive option due to the increasing number of companies choosing to stay private for longer. This has created a growing opportunity for investors to profit from the current market environment.

Investing in private markets is now the new normal, with thousands of funds available and more launching every year, making it a challenging task for investors to navigate.

Pietro Cecere, Head of European Research at Citywire, and Guido Lombardi, Head of Research and Ext Funds Allocation program - Investment Solutions at DWS Group, are co-chairing a session to share best practices and key lessons for investors.

Confirmed panellists include Gaetan Aversano, Deputy Head of Private Markets Group at Union Bancaire Privée – UBP, Romy Cuadras, Head of Alternatives and Fund Solutions at Banque Pictet & Cie, Elisabeth Istanboulli von Tscharner, Senior Alternative Investment Advisor at HSBC Private Bank (Suisse), and Alessandra Puglisi, Executive Director, Private Equity Investments at UBS.

Investors have been (and will be) challenged by the growing number of private markets funds available in the market.

The session aims to provide investors with practical tips and key lessons to take back to the office and implement in their investment strategies.

Companies are now choosing to stay private for longer, which is changing the traditional IPO timeline. This is causing a shift in focus towards late-stage venture capital (VC) investments.

The average age of companies going public is rising, and this trend is expected to continue. As a result, investors are looking for ways to profit from the current opportunity set.

Late-stage VC investments offer a way to access a diversified portfolio of leading privately-owned companies with a focus on high-growth innovation. This includes companies that are opting to stay private for longer.

Kevin Moss, a Managing Director and Portfolio Manager of Liberty Street Advisors, Inc., will discuss the implications of this trend and how to navigate the late-stage VC landscape. He will also explore how to optimize investment strategy in an ever-evolving market environment.

The workshop objective is to understand why companies are opting to stay private for longer and how investors can profit from the current opportunity set.

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Attractive regions with urban character are a key focus in Zurich Alternative Asset Management's portfolio construction. This approach allows them to tap into the growth potential of these areas.

Specific risk analysis is conducted for individual markets to ensure a tailored approach. This helps to mitigate potential risks and maximize returns.

Focus is placed on rental income and capital appreciation, providing a solid foundation for long-term growth. By prioritizing these elements, the management team can create a stable and profitable portfolio.

A broad diversification strategy is employed, with 39 properties in the portfolio by the end of 2020. This diversification helps to spread risk and increase overall portfolio resilience.

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Private equity secondaries offer a unique opportunity for investors to gain exposure to private equity and diversify their portfolios. This asset class has seen significant growth since 2017, driven by a growing PE inventory and turnover, as well as an LP need for liquidity.

Growing demand for private asset returns from the wealth channel has driven the adoption of open-ended, semi-liquid strategies. Private equity secondaries, with their fast settlement and quicker paydowns, could be an ideal asset class to be housed within these wealth-focused fund structures.

Franklin Templeton, a global asset manager, offers a gateway to investment excellence through its Alternatives platform. This platform provides access to a diversified range of alternative asset capabilities, backed by specialist investment managers with deep expertise in private credit, private equity, and other asset classes.

Coller Capital, a leading investor in the secondary market for private assets, has been a pioneer in this space since 1990. The firm provides liquidity solutions to private markets investors worldwide, acquiring interests in private equity, private credit, and other private markets assets.

Private equity secondaries can serve as a useful diversification tool, helping to actively rebalance portfolios and mitigate primary J-curve risks. By investing in secondaries, investors can potentially gain earlier cash returns and reduce their investment risk.

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In the world of alternative asset management, Zurich stands out as a hub for innovative investment strategies.

Zurich Alternative Asset Management firms are known for their expertise in managing alternative assets, such as private equity, hedge funds, and real estate.

These firms often have a strong focus on risk management and diversification, which is essential for achieving long-term investment goals.

A significant number of Zurich-based firms have experienced significant growth in recent years, with some reporting increases in assets under management of over 20%.

This growth is largely driven by the increasing demand for alternative assets from institutional investors and high net worth individuals.

Many Zurich Alternative Asset Management firms have a strong presence in emerging markets, where there is a growing need for investment in infrastructure and other development projects.

These firms often have a deep understanding of the local market conditions and can provide valuable insights to investors looking to tap into these opportunities.

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In recent years, Zurich has become a hub for alternative asset management, with many firms setting up shop in the city. Zurich's strong financial infrastructure and highly skilled workforce have made it an attractive location for these companies.

The Swiss market is expected to continue to grow, with a predicted increase in demand for alternative investments. This growth is driven in part by the increasing popularity of sustainable investing.

Zurich-based firms are well-positioned to capitalize on this trend, with many already incorporating ESG factors into their investment decisions. According to a recent survey, 80% of Swiss asset managers now consider ESG factors when making investment decisions.

One of the key drivers of growth in the Zurich alternative asset management market is the increasing demand for private equity and venture capital investments. This is driven in part by the growing number of family offices and high net worth individuals seeking to invest in these asset classes.

The city's strong network of universities and research institutions also provides a steady supply of talented graduates and researchers, who are attracted to the city's vibrant startup ecosystem.

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The Zurich Investment Foundation Real Estate USA is a product offered by Zurich Alternative Asset Management. It's a direct investment with 100% ownership, regulated by the OAK and part of the Zurich investment group.

The investment group is focused on real estate, with a minimum 80% core risk profile. This means the investment is primarily focused on stable, long-term assets.

The product has an ISIN/security number of CH0448058815 or 44 805 881 and is invoiced in Swiss francs (CHF). Currency risks are not hedged, which means the investment is exposed to fluctuations in the exchange rate.

The management fee ranges from 0.7-0.8% per annum, and the price may vary depending on the allocation of underlying products. A front-end load of 1.5% (maximum 5.0% according to the prospectus) is applicable.

Here's a summary of the product's key details:

In the Zurich alternative asset management industry, you'll find a variety of roles that cater to different skill sets and interests.

Portfolio managers are responsible for making investment decisions and overseeing the performance of alternative assets.

Investment analysts provide research and analysis to support portfolio managers in their decision-making process.

Risk managers ensure that investments are aligned with the client's risk tolerance and that potential risks are mitigated.

Compliance officers are responsible for ensuring that all investment activities are in compliance with regulatory requirements.

Investment operations teams handle the administrative tasks associated with investing, such as settlement and custody.

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At the heart of Zurich Alternative Asset Management's discussion topics are several key areas of focus. Asset allocation and asset protection will be updated, with insights on how local and regional clients are growing their assets and protecting their wealth.

One of the main discussion topics is structuring, tax, trust, and estate planning. You'll learn about the latest regulations and how they impact your wealth management strategy.

Alternative investments, such as private equity, hedge funds, real estate, commodities, and esoteric asset classes, will also be explored. These asset classes can be appealing to wealthy families, but it's essential to understand how to allocate them effectively.

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Fixed-income managers from across the country will share actionable ideas on how to stay liquid, profit, and protect clients' portfolios. This is crucial for maintaining a stable financial position.

Family offices will share their views on asset allocation, including which asset classes they use to achieve sufficient portfolio returns and asset stability. This can be a valuable learning opportunity for those looking to optimize their investment strategies.