Private MarketsPrivate equity is a special form of investment. Due to the long-term nature of private equity, careful selection of investments is particularly important. Key decision criteria are the quality of the value added on the one hand and a track record of steady value growth on the other.
On vineyards and farmland
The relationship between private equity and conventional asset classes is very similar to the relationship between viniculture and agriculture. In the case of farmland, the farmer is free to decide from year to year if and what to sow. A vineyard, on the other hand, requires constant attention over years, vines have to be maintained and, at the beginning of a year, the grower does not know how the grapes will turn out. What he does know, however, is that some years will produce excellent vintages that will more than compensate him for years of inferior quality.
The key requirement in private equity is therefore the ability to manage portfolio companies in such a way that they will achieve operational excellence and to turn investment ideas into measurable, profitable results. This is not achieved over a few quarters, but takes years.
Investments with a long horizon
With private equity, companies are ideally managed not to achieve quarterly targets but to meet long-term strategic goals. At the same time, control can be exercised faster and more directly at the operational level. In terms of results, private equity differs from stocks by its long-term and anti-cyclical outperformance.
A partner with experience
Gutmann combines exclusive access to leading private equity managers with bespoke solutions for institutional clients, family offices and high-net-worth individuals. Gutmann’s collaboration with leading, specially selected general partners, limited partners and secondary buyers offers its clients the significant benefit of gaining access to expertise and networks in the international market. On this basis, services have been developed over the past 20 years that have produced proven results.
Picking the right components
Bank Gutmann clients have access to highly qualified private equity managers to make their private equity investments a success. Due diligence reviews, investment transaction and monitoring are conducted on the basis of a jointly developed strategy while a customised reporting system provides maximum transparency of financial performance. Comprehensive relationship management is provided personally and at the highest level that a private bank can offer.