Cash managers are more and more trying past public markets for returns amid volatility and accelerating inflation. Final yr, funding companies for wealthy people and households elevated allocations to personal markets and are set to take action once more in 2023 as a part of the most important shake-up of portfolios in years, UBS Group mentioned final month.
A consultant for Julius Baer declined to remark.
The Zurich-based financial institution’s newest fund requires commitments of at the very least $125,000 and can principally give attention to small and medium-sized personal fairness companies elevating between $350 million and $3.5 billion. It would additionally goal direct co-investments and secondary alternatives in personal markets.
Julius Baer raised $221 million for its classic program final yr and $144 million in 2021, greater than double the sums from 2019 to 2020, in response to the paperwork. These funds have invested in companies together with South Korea’s MBK Companions, US plant-based vitamin firm Inconceivable Meals and London-based secondary offers agency Hollyport Capital. They’d gross returns of as a lot as 27.4 per cent via September 2022.
Julius Baer CEO Philipp Rickenbacher mentioned in an earnings name final yr that the 2021 personal fairness classic fund was “considerably oversubscribed.”
The financial institution has a staff of about 16 professionals for its personal markets platform, which began a decade in the past and oversees about $5 billion in shopper commitments. It has employed bankers from Credit score Suisse Group and UBS to assist construct out personal market choices lately.
Julius Baer managed about 424.1 billion Swiss francs ($468 billion) at year-end, making it the third-largest Swiss financial institution after Credit score Suisse and UBS.