PRIVATE EQUITY

The investment vehicle

Balian Private Equity

Alvaro González Ruiz-Jarabo

Private Equity Managing Partner

Balian will select the best European Private Equity funds (ex-Spain), and will co-invest directly with them. Balian will also have the possibility to access the secondary market.

Balian will be focused in Small and Mid “Growth” and “Buy-out” funds with a size between 40 and 600 million euro (Private Equity Funds that invest in unlisted Small and mid-cap companies).

The targeted companies will have an EV between 10 and 100 million euro. There will not be sector restrictions and the portfolio manager will give priority to those sectors that will contribute to the stability of the portfolio.

    Alvaro González Ruiz-Jarabo

    Private Equity Managing Partner

    Balian will include around 14-16 funds that will have 130-180 underlying companies, from 14 different Western European countries and in four different currencies.

    • Geographies: Germany, Austria, Belgium, Denmark, Finland, Netherlands, Italy, Ireland, Luxembourg, Norway, UK, Sweden, Switzerland.
    • Currencies: Most of the portfolio will be denominated in euros but also, we will diversify in Krones, Pounds and Swiss Franc.

    Private Equity

    Why invest in Balian

    Balian will be focused on achieving excellent double digit returns with a capital preservation scheme.

    Private Equity sector

    1.- Better returns than other investment options. (Equity, Fixed Income, Real Estate).

    2.- Less risk and volatility.

    3.- Tangible value creation – Small and Mid- cap companies with profitable and solid returns on the long run.

    European Small and Mid-caps

     

    Western Europe (Netherlands, Germany, UK, North Italy, Benelux…) has a strong economic and industrial background that provides and enables an optimal business structure/ network for Private Equity investments.

    European Small and Mid-caps offer better returns and less risk and volatility due to three main factors:

    1.- Capability to buy cheap of a Small and Mid-cap firm vs a large company: Less competitiveness, less funds looking for the same opportunity and less capital competing in that segment. Local deals with no intermediaries.

    2.- Capability to increase profits in a Small and Mid-cap firm vs a large company:

    • Organic growth: Facility to implement/establish new process, new structures, organizational changes and expand the market.
    • Inorganic growth: Facility to implement a “Buy&Build” strategy and gain market share quickly vs a large cap companies. It is easier and faster to implement costs and income synergies in Small and mid-firms than in large companies.

    3.- Less indebtedness in a small and mid-firms: the asset is more resilient to economic cycles. Companies with a moderate net debt/EBITDA ratio vs leveraged deals that have an intrinsic risk when there is a downside economic cycle.

    Investment Vehicle: Fund of Funds

    1.- Fund of Funds vs direct fund: The returns delta achieved investing in a direct fund does not offset/balance the risk delta involved.

    Optimal Risk/ Return ratio in a Fund of Funds vehicle:

    • Excellent returns
    • The wide diversification in geographies, currencies, sectors, companies and portfolio managers reduces the possibility of a loss to a minimum.

     Chart: Probability of partial or total loss of PE Fund of Funds is close to zero

    Source: The Risk Profiles of Private Equity. Weidig and Mathonet, January 2004.

     2.- Access to the best European portfolio managers: Private Equity managers with excellent backgrounds from prestigious universities and companies worldwide with excellent historical returns. We choose the best among the best (top 25%). Funds that are difficult to identify and get access to, many of them oversubscribed.

      A team of talented and experienced professionals

      Join us and invest with our Portfolio Managers

      Do not hesitate to contact us if you have any questions

      Gesconsult SGIIC

       C/ Príncipe de Vergara 36, 6º dcha
       28001 Madrid
       Tel: +34 91 577 49 31
       Email: fondos@gesconsult.es

      Firm registered with the CNMV

      Founded in 1987, Gesconsult is an asset management firm of collective investment institutions (SGIIC) registered with the National Securities Market Commission (CNMV).

      About us

      We invest in companies we know in depth to obtain the highest return by prioritizing capital preservation and risk management.

      Legal notice: All returns are expressed in net terms, after expenses and fees. Past performance is not indicative of future performance. All returns referring to periods longer than one year are annualised. You can contact us through the website or by sending an email to info@gesconsult.com. Source: Gesconsult SGIIC.