We approach investing in private equity as if we were the direct owners of the portfolio companies. I.e., we want exposure to profitable and sustainable businesses with long-term growth potential either through organic growth or acquisitions.
Through our fund managers, we provide access to highly diversified private equity portfolios across geographies, sectors, industries, business-sizes, and vintages to provide consistent returns in excess of public market equivalents.
Our goal is to gain exposure to businesses which sponsors may credibly improve via their operational transformation and/or exit multiple expansion.
Building long-term relationships with like-minded private equity fund managers that have a long track record of delivering value-add as business owners and operators is critical.
Venture Capital (VC) & Growth Capital
While venture capital investments, especially in technology, health care, and crypto, have enjoyed more spotlight over the past decade, only the top quartile managers have been able to deliver superior risk-adjusted-returns over other alternative asset classes.
Through our fund managers, we seek exposure to later-stage businesses that have proven, working business models and high margins vis-à-vis pre-seed and early-stage venture capital investments.
Our selected fund managers provide access to highly diversified venture capital portfolios that capture VC beta while minimizing the left tail risk associated with this special alternative asset class.
Our VC network consists of long-term relationships with only the most established venture capitalists which have demonstrated significant expertise, return consistency across vintages, and extensive networks in their specialized domain(s).
Real Estate (RE) & Infrastructure
Our team typically focuses on fund managers who approach RE and infrastructure investing via equity or equity-like instruments and who seek controlling stakes in such privately-owned businesses secured by underlying assets, namely physical properties and contracts that guarantee future cash flows.
Through our fund managers, we invest in real estate and infrastructure as businesses that can deliver predictable cash flows over time. We put equal importance on managers with sound underwriting of collateral, unmatched operational expertise, and detailed deal documentation and structuring to minimize downside risk. We build long-term relationships with only the most established real estate and infrastructure investors who have demonstrated their capabilities through multiple cycles.
Our clients can access highly diversified real estate and infrastructure portfolios across geographies, segments, strategies, and vintages to provide cash-flow returns that are unique to real assets. Our goal is to provide inflation-protection and orthogonal sources of returns to the overall investment portfolio.
Private debt has become an ever-larger and even more important alternative asset class since the 2008 financial crisis as banks retreat from lending under increased regulatory scrutiny.
Private debt investments typically focus on bilateral, privately-placed loans to businesses that may have difficulty accessing capital markets or which cannot receive timely financing via regular banking channels.
We allocate to private debt by focusing on the quality of the loans which a manager can originate. We focus on managers who have a proven, pristine record of very low annualized credit losses over multiple market cycles. Managers must have a demonstrated ability to source, structure, and monitor/workout loans and operate at scale.
We provide access to highly diversified private debt portfolios across major geographies, sectors, industries, business-sizes, and vintages to provide consistent cash-flow returns with minimum drawdown risk.
Our goal is to provide cash-flow matching to the overall investment portfolio. We build long-term relationships with only the most established private debt managers who understand credit risk thoroughly and manage them successfully over multiple cycles.
Manager selection plays a critical role in our approach to hedge funds (HFs). In our view, hedge fund diligence and screening should be centered on specialization. We seek to identify the strongest investment teams which are exclusively dedicated to a specific market, a temporary inefficiency/opportunity, or a dedicated style of investment. At Klarphos we prefer to partner with fund managers whose investment goals are fully aligned with their portfolio manager goals. We allocate to firms which have developed institutional capabilities and we attributed added conviction to those which consistently re-invest in their business in order to widen moats and improve the probability of achieving higher potential future returns for their investors.
We strongly believe that the best way to express HF exposure is through adequate diversification. In this vein, our team builds HF portfolios that are diversified in three ways: investible asset universe, strategy / style, and portfolio managers.
Our team remains convinced that the preferred overall method to allocate to hedge funds is through what we label our “global portfolio approach”, in which each manager will occupy their own respective role within the overall portfolio with an aim to generate a defined range of risk and return targets across the cycle, together with minimum drawdown risk.
Building a new portfolio
We can develop a road map for a long-term Alternative Investments program based on our client’s specific return expectations, risk tolerance, internal resources and time horizon.
Expanding an existing portfolio
We provide thorough analysis of existing Alternative Investments portfolios which can identify new opportunities which complement the client’s program and achieve client objectives.
Targeted & niche strategy
We can create portfolios that help meet our client’s specific investment needs and requirements taking either a separately managed or fund-of-one approach.
You can launch your alternative investment fund or SMA with us. We take care of fund set-up, portfolio management, risk management, reporting, and compliance and regulatory issues.
Fund of Ones (FoO)
A fast and transparent solution based on a fund structure that we set up and manage on our fund platform for a single investor.
Separately Managed Accounts (SMA)
A flexible and easy to implement solution allowing us to manage client-owned assets according to specified preferences and restrictions.
Our investment approach
Rigorous research, analytics & insight
We are proud of our scrupulous approach to research, analytics, and reporting in order to understand and meet client needs and exceed our clients’ expectations. Our analysis and due diligence processes are exhaustive in order to ensure maximum efficiency.
High calibre negotiation power
Our approach balances relationships and opportunities. Our pooling capabilities and access to the market means we can pass on fee discounts.
Funded assets + Meticulously leveraging technology
Our extensive proprietary due diligence models ensure we maximally exploit opportunities available across the alternatives landscape and enable us to focus on Access and Selection, delivered with unrivalled cost efficiency.
Active, tailored, boutique approach
Our investment decisions remain impartial and objective. Our decision making is independent according to each portfolio’s unique goals.
We deliver unbiased decision making without conflicts. We are allocators first and only, so our strategies do not compete with our clients. We never invest in funds offered by our ultimate owners.