Private equity PAC Man – Henning von Sachsen-Altenburg lends his insight for Citywealth magazine
Private equity has turned into a racing Ferrari at Le Mans, winning through industry consolidation, reducing admin costs and introducing automation. Gone are the days when UHNWs would shy away from private equity as an unknown frontier. Wealth management has witnessed the whirlwind in the trust sector, accountancy practices now have their consolidator in the Cogital group and other professional practice sectors like dentistry are being rounded up. It’s not so much who but how many businesses of one type can be pulled into a PE house.
Long term view
Alexandra Daly, CEO and Founder of AA Advisors, who have been appointed on multiple global private equity mandates from the family office investor base believes that UHNWs and family offices, both single and multi are one of the most interesting and vital “limited partner” groups that are accessing PE opportunities. In her experience, “these groups have a history of being strategic and long-term investors and if they like an opportunity and appreciate the style of portfolio management, then they will be a return investor for successive fund raises”.
Despite the interest in co-investing, opportunities are sparse. “When they do occur, they are normally on an alongside investment where families or limited partners are already in the fund”, explains Daly. She sees UHNWs interested in real estate, infrastructure and social impact investing strategies. (Read more about the latest in ESG investing here). To fill the gap, “new providers have come to market enabling UHNWs to ‘shop’ for PE investments”, said Henning von Sachsen-Altenburg, Partner at law firm McCarthy Denning.
The full article was originally published by Citywealth Magazine and can be found by clicking here
DATE 20/11/2019
