Global Venture Capital Service
Partner, Fund Research
WHAT IS IT?
A managed service that aims to achieve capital growth through fund strategies focused on private equity investments (i.e. investments in privately-owned companies with no public listing). The service will aim to benefit from the structural advantages available to private equity/venture capital investment managers (such as the ability to guide the strategic initiatives of their investee businesses) and to take advantage of a broadening opportunity set as an increasing proportion of businesses are choosing to remain private for longer.
WHY KILLIK & CO?
As an independently owned investment house we are free to develop investment ideas and strategies internally without conflict of interest, giving us access to the best funds in the marketplace.
The Global Venture Capital Service is constructed and actively managed by our dedicated team of in-house fund analysts. The underlying portfolios will contain companies at differing stages of development but with a bias towards venture capital focused strategies, providing growth capital to businesses as they look to expand.
WHO IS IT RIGHT FOR?
This service is suitable only for investors with a long-term time horizon. An allocation to earlier stage private businesses may compliment a globally diversified listed equity portfolio for growth-orientated investors.
This managed service aims to achieve capital growth through fund strategies focused on private equity investments (i.e. investments in privately-owned companies with no public listing). The underlying portfolios will contain companies at differing stages of development but with a bias towards venture capital focused strategies, providing growth capital to businesses as they look to expand.
The service will aim to benefit from the structural advantages available to private equity/venture capital investment managers (such as the ability to guide the strategic initiatives of their investee businesses) and to take advantage of a broadening opportunity set as an increasing proportion of businesses are choosing to remain private for longer.
Our Investment Process
A fund-based approach is used to leverage the expertise of specialist investors and to gain access to private company investments which would ordinarily not be able to be invested in by individual investors. Investments are made to a range of specialist fund strategies and investment companies targeting private investments across a variety of industry sectors.
Our screening and selection process goes beyond just financial analysis, and includes interviews with the Fund Managers as well as ongoing contact with them, ensuring any change to the investment case can be quickly identified and underperformers replaced where necessary. The exact number of underlying investments will depend on various factors, including your individual circumstances, but a typical portfolio is likely to contain a range of strategies with differing characteristics and performance drivers.
The investment universe includes both global and regional strategies and both broad and single sector mandates within the private equity and venture capital sector. The underlying portfolio will typically include businesses at various phases of development but with a bias towards those at an earlier stage of development.
The service constructs a portfolio of specialist funds and investment vehicles. It invests primarily in closed end funds (e.g. investment trusts and investment companies) as well as companies which, although may not be classified as closed end funds, contain portfolios diversified across multiple underlying assets and display characteristics of funds (e.g. venture capital companies). These fund structures provide a fixed capital pool enabling investment in private assets. In more selective circumstances the service may gain exposure via Exchange Traded Funds (ETFs), open end funds (e.g. unit trusts and OEICs) and private investment vehicles.
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Risks to be aware of
As is the very nature of investing, the value of your investments will rise and fall over time. We devote our time to sourcing the very best investments to meet your objectives, however please do not assume that past performance will repeat itself and you must be comfortable in the knowledge that you may receive less than you originally invested.
Whilst many of the fund investments will themselves have a market listing and therefore a secondary market value, the underlying portfolios will primarily be in unquoted equity securities without a public market listing. Private assets by their nature may be more difficult to realise than publicly traded securities. and are more difficult to value and valued on a less frequent basis. There can be no guarantee that the valuation process used to value the underlying portfolios will reflect the actual value achievable on realisation of those investments.
The service will look to invest in a broad range of differing investment strategies. However, the selection of strategies are likely to have commonality in certain growth orientated investment characteristics. Should this investment grouping undergo a period of poor performance, the service will likely suffer.
The portfolios underlying the selected funds will typically include businesses at an earlier stage of development leading to higher levels of risk compared to more mature businesses.
Closed-ended funds may borrow to invest, thus adding to their overall level of risk, and may trade at a discount to their net asset value for prolonged periods of time.
Many of the fund constituents of the service will hold securities that are not denominated in sterling, leading to fluctuations in the portfolio value due to exchange rate movements.
If you would like to find out more about our Global Venture Capital Service, please contact your nearest branch or our Head Office on [email protected] or 020 7337 0777.