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TAILORED INVESTMENTS T


he GFC, and ongoing global economic problems and uncertainty prevailing since, have all emphasized the high risk inherent in publicly traded markets and the unavoidable exposure


to what were previously considered ‘black swan’ events. Such events, ranging from tsunamis, social unrest and civil wars, health epidemics, debt downgrades and defaults (sovereign and corporate), bank failures, terrorist attacks and technology failures, seem to occur with ever-increasing regularity.


Sophisticated investors have also started to realize that


large public market fund managers are finding it difficult to add value, with their processes generally too slow, their market impact too high and their fee structures not well aligned to the investment outcomes. They are at best proxies for the market – only a small percentage of fund managers have managed to outperform during the post- GFC period. For private family offices and high net worth investors,


this has led to an enhanced focus on accessing focused and tailor-made investment opportunities with a clearly identified set of risk factors, reduced correlation with and exposure to the market, and fee structures that are better aligned to their desired outcomes.


firms such as Alceon that have focused on building trusted relationships with their investor base, and provide an origination and asset management capability that can deliver discrete, tailored investment opportunities with superior risk- adjusted returns. The main features of such investment models are:


ƒ ability to be nimble and act quickly to take advantage of market opportunities, supported by efficient decision-making and high-quality, professional investment analysis and due diligence ƒ immediate access to capital, enabled among other things by trusted client relationships, which cannot be matched by bigger, more bureaucratic and cumbersome investment institutions ƒ genuine focus on risk-adjusted return, with due regard to prevailing market conditions – allowing private family offices and HNW investors to choose their investments of preference and build a balanced portfolio with a tailored risk-adjusted return profile ƒ flexible fee structures tailored to the specific investment and better aligned to investor outcomes. Finally, in the context of significant and ongoing global


economic challenges, investors are increasing their focus on ‘safe haven’ investment jurisdictions that are considered most insulated from potential investment shocks. There is a growing acknowledgement that Australia, as


“Large public market fund managers … are at best proxies for the market – only a small percentage of fund managers have managed to outperform during the post-GFC period”


These more sophisticated investors are also seeking to


have a component of their investment portfolio applied to specific and identified opportunities with shorter duration and clear realization strategies within three to five years, rather than having their wealth tied up in “blind funds” for seven to ten years, as is typical of most private equity funds. In parallel with the emergence of this new investment


philosophy is the growing scale and expectations of private family office and HNW investors. This is being fuelled not only by the increase in the absolute size of the investment pool but the increasing sophistication of these investors. Many have hired high-quality, institutional-grade investment professionals who are able to review and assess opportunities and invest on an efficient and collaborative basis with high-quality, trusted providers such as Alceon. This new investment philosophy and approach of


the private family office and HNW investor network has occurred in conjunction with the emergence of specialist


one of the larger, more sophisticated investment markets in the world, is also one of the most attractive investment destinations in the world today, with an enviable combination of safe haven and growth characteristics, including: ƒ strong economic fundamentals underpinned by exposure to the growing Asian region ƒ strong banking system and low sovereign debt levels ƒ stable political and legal systems ƒ depth of investment opportunity, with good risk-adjusted returns ƒ stable and moderate inflation ƒ appreciating currency ƒ high-quality investment industry and professionals ƒ strong business and entrepreneurial culture. Prospects for continued growth are excellent and,


combined with its positive currency prospects, Australia is now emerging as a favored destination for offshore private family offices and HNW investors. Australia, and companies such as Alceon, will be at the


forefront of this quiet but growing investment revolution aimed at providing such investors with bespoke investment opportunities delivering superior risk-adjusted returns.


Alceon is a leading Australian advisory and investment organization that is focused on providing its exclusive network of private family office and HNW clients with the opportunity to invest in bespoke opportunities with superior risk-adjusted returns.


Alceon also provides corporate financial advisory and capital-raising services. For more details, please go to www.alceon.com.au or call +61 2 8023 4000.


Alceon is led by co-founder and managing director Trevor Loewensohn. Trevor has over 25 years of investment banking experience, mostly for leading global investment banks in Australia, including vice-chairman at UBS Investment Bank, after moving from head of investment banking, and joint CEO at JP Morgan. Before founding Alceon, Trevor was the global head of capital markets and advisory at Babcock & Brown.


FAMILY OFFICE: ASIA TOMORROW 73


OPERATIONS


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