A new configurable investment vehicle is bridging the gap between capital raisers and financial institutions that want to offer a broader range of alternative investments to their clients.
With more firms looking to raise capital and close funding rounds in a shorter space of time, the investment structuring solution uses technology to meet all regulatory requirements quickly and in a more robust manner.
The investment vehicle, created by fintech company Delio, offers greater flexibility for firms when raising capital for their clients by enabling them to expand the distribution of opportunities beyond traditional institutional investors. At the same time, the creation of investment baskets is enabling leading private banks, such as Barclays, to offer previously inaccessible opportunities in emerging, high-growth sectors to some of its HNW clients.
One of the first investment advisers to benefit from this new investment structuring service is Future Planet Capital. Future Planet is a global university venture investor, focused on investing in companies emerging from some of the world’s most prestigious educational institutions, including Harvard, Cambridge and Berkeley. As many of these ventures operate in cutting-edge industries like technology and life-sciences, there is often a need for Future Planet Capital to raise investment rapidly to support their clients’ accelerated growth.
Alessandra Ricagno, who leads Delio Structuring Solutions, says: “Many firms are looking to raise capital and close funding rounds against tight deadlines, while ensuring that they still meet all of their regulatory requirements. This means that they need to consider different ways of engaging with investors, particularly through new distribution channels. A well-constructed investment structuring framework can help firms like Future Planet Capital to accelerate their fund raising through collaboration with other financial institutions who are seeking investment opportunities for their clients.”
In this instance, Future Planet Capital worked with Barclays to deliver alternative investment opportunities to their private banking clients. Ricagno and her team created a set of investment baskets that enabled individual investors to pool their capital in a concentrated, thematic portfolio that had the ability to be distributed to sophisticated clients across multiple jurisdictions.
Douglas Hansen-Luke, Executive Chairman of Future Planet Capital, says: this approach helped them to meet their capital raising target quicker, but also allowed Barclays to offer some of their wealthiest clients a unique way of diversifying their investment portfolios. “As well as offering access for institutional investors, Delio’s deal structuring solution provided an easy mechanism by which the opportunity could be distributed by Barclays Private Bank, creating access for private individuals who were looking to invest.”
As the private markets landscape becomes increasingly competitive, Ms Ricagno believes investment frameworks that facilitate flexible co-investment opportunities will be critical to how institutions offer their clients access to private market investments. She continued: “The growing demand from individual investors seeking access to private markets has been well documented. The challenge for private banks and wealth managers is how they offer their wealthiest clients access to a diverse set of investment products in an effective, efficient and compliant way.
“Through our structuring solutions, firms can distribute these alternative investment opportunities to their clients and help them customise their portfolio in a way that’s previously been difficult to achieve. It’s a simple and effective way for them to add value and differentiate their proposition in an increasingly crowded market.”