Zurich-based Finvest Asset Management has been awarded a USD2.5bn allocation for investment in private equity.
Zurich-based Finvest Asset Management has been awarded a USD2.5bn allocation for investment in private equity.
The allocation comes in the wake of an award to Finvest last year for USD300m which will be separately dedicated to a fund of funds.
Finvest says the private equity initiative is being launched at a time when most economists are predicting a protracted recession, which will ultimately be of further impact to emerging markets. Allocations for the new private equity fund will be made through private placements.
Companies which are listed on the main boards in US and the Europe will be targeted. The fund will seek to allocate capital to between 25 and 100 companies, with each allocation ranging in a value of between USD10m and USD250m.
The new fund’s time horizon will be between three and five years, although liquidity will be an important criterion in assessing risk.
Companies below a USD200m market capitalization will not be discounted, however the fund will be favourably disposed towards companies with higher market capitalization levels, and which exhibit a high percentage of outstanding shares.
Finvest portfolio strategist Mayer Greenwald says: "While we are not looking to cut corners on due diligence, we are looking to fast track the allocation process, so that we can take advantage of a market which has been beaten to shreds.’
Finvest says it is in current discussions with several companies which have expressed interest in receiving a capital allocation.
