PRIVATE EQUITY

The investment vehicle

Balian Private Equity

If you would like to receive more information about Balian Private Equity and its investments, please contact us without any commitments at balianpe@gesconsult.es

ISIN
ES0141952004

Category
Private Equity Fund of Funds

Strategy
European lower mid-market (ex-Iberia)

Investment period
4 years

Minimum commitment
100.000€

Depositary
Inversis Bank

Private Equity

Why invest in Balian

Balian is focused on achieving excellent double digit returns with a capital preservation scheme.

1.- Better returns than other investment options. (Equity, Fixed Income, Real Estate).

2.- Less risk and volatility.

3.- Tangible value creation – Small and Mid- cap companies with profitable and solid returns on the long run.

Western Europe (Netherlands, Germany, UK, North Italy, Benelux…) has a strong economic and industrial background that provides and enables an optimal business structure/ network for Private Equity investments.

European Small and Mid-caps offer better returns and less risk and volatility due to three main factors:

1.- Capability to buy cheap of a Small and Mid-cap firm vs a large company: Less competitiveness, less funds looking for the same opportunity and less capital competing in that segment. Local deals with no intermediaries.

2.- Capability to increase profits in a Small and Mid-cap firm vs a large company:

• Organic growth: Facility to implement/establish new process, new structures, organizational changes and expand the market.
• Inorganic growth: Facility to implement a “Buy&Build” strategy and gain market share quickly vs a large cap companies. It is easier and faster to implement costs and income synergies in Small and mid-firms than in large companies.

3.- Less indebtedness in a small and mid-firms: the asset is more resilient to economic cycles. Companies with a moderate net debt/EBITDA ratio vs leveraged deals that have an intrinsic risk when there is a downside economic cycle.

1.- Fund of Funds vs direct fund: The returns delta achieved investing in a direct fund does not offset/balance the risk delta involved.

Optimal Risk/ Return ratio in a Fund of Funds vehicle:

• Excellent returns
• The wide diversification in geographies, currencies, sectors, companies and portfolio managers reduces the possibility of a loss to a minimum.

 Chart: Probability of partial or total loss of PE Fund of Funds is close to zero

 2.- Access to the best European portfolio managers: Private Equity managers with excellent backgrounds from prestigious universities and companies worldwide with excellent historical returns. We choose the best among the best (top 25%). Funds that are difficult to identify and get access to, many of them oversubscribed.