You may find yourself asking what do we do here at Dutch Oracle – well here is the answer:
When you are stewarding substantial wealth, the investment spectrum becomes more complex. Exposure to venture capital, start-ups, private equity, derivatives and hedge funds has grown substantially for most wealth owners. Non-mainstream assets and investments are increasingly part of many portfolios.
According to the latest World Wealth Report 2013 by CapGemini & RBC, 10.1% of the total net worth of HNWI is invested in “Alternative Investments”, excluding real estate.
If your investments are some reflection of these global statistics, you will agree that this highly interesting, lucrative asset class requires a different approach and additional skill set than the traditional ones.
In the past several years, I have dedicated my professional time to try to master this growing asset class of “Alternatives”. Even though my education and experience gave me an excellent starting point, I still ran into the following reoccurring challenges:
- Where do you find these great, quality, opportunities to invest in? The Internet is full of suggestions and people looking for capital and local pitch events are okay. But mostly it is non-personal, non- exclusive and not always of great quality either. Generally, by the time these opportunities reach the average investor, the better ones are cherry-picked by others and not (widely) available.
- Once you have created some consistent deal flow, how do you assess each deal? How can you do this methodically and relatively quick for the 1st screening filter? (Avoid burning all your precious time to review countless deals).
- Then, when you have these investments in your portfolio, how do you manage, oversee and continuously re-assess its progress. Grow them?
From my earlier days as professional investment manager, I learned that avoiding the “Black Hole Investments” is more important than picking a winner. This is especially true in the group of alternative assets. Another key element to success is to collaborate with other successful people, to share knowledge, connections and opportunities. Ultimately it’s experience and exposure to high quality deals that made me realize when certain opportunities stand out against others. You need to be able to compare prospective deals over time, with a solid 3 dimensional point of reference.
Being active as an investor, deal scout and sometimes business consultant, I regularly act as trusted sounding board for Family Offices and individual wealth owners regarding their (often complex) non-traditional assets. For many high net worth individuals and families it is hard to find or access focused expertise in the non mainstream assets category, let alone tailored help to their specific situation.
If you have such assets in your portfolio or are pursuing alternative investments, like me, you would greatly benefit from the solution I created for my private investment company DutchOracle Capital. The purpose is to save you lots of time, massively increase the number and quality of transactions to choose from, improve the chances of profit by co-investing and sharing knowledge and connections, confidently negotiate terms, open doors and opportunities on an international scale.