With the upswing in interest for Alternative Investments, particularly from HNW clients, you may ask yourself, “how do I get involved?”
According to the RBC World Wealth Report in 2013 as much as 10.1% of HNW individual investments are in the alternative investments category. Global instability and over valued bond and equity markets may be partially to blame, but family offices and HNW individuals know that this asset class can give solid returns and have lower management fees than institutionally managed investments. The question is, how do you find the good deals.
For the individual investor, the option may be to belong to a local Venture Capital organisation, but the deal flow in that organisation is typically limited by a small network of connections and a geographic constraint.
According to André Voskuil of Dutch Oracle finding the deals is not as easy as you think. “My objective is to start each year knowing I may be looking at 200 deals to find the best options for my Inner Circle clients”. Not only does it sound like a lot of work, but according to Voskuil those deals are not local. “The challenge many Venture Capital organisations find is that the quality of deals is very limited in one geographic location. To service our clients properly I spend a lot of time on a plane identifying a few select opportunities around the world. Five percent of the time I may find a winner”.
Even when Voskuil believes he has found a “winner” his clients are protected by his hands on management of that investment. While the management fees are typically less than an institutional fund the management input certainly is not. That is why Dutch Oracle Inner Circle clients pay a membership fee.
Dutch Oracle has a membership option for it’s high net worth clients that ensures their focus is on their clients best interest. “We work on the money side” said Voskuil, adding “it ensures that the decisions we make are on behalf of Inner Circle clients. It helps our office keep a clear focus on our objective and when we have decisions to make regarding the investment it is for our clients benefit”.
Even winning investments have a habit of not following a chosen path. Voskuil believes acknowledging this fact up front allows for strategic input at the right time. When a deal does fluctuate from a chosen path it needs to be monitored and attention paid to the management team’s plan and course of action. If necessary the Dutch Oracle team is ready to weigh in on some hefty decision making to influence the course of action.
The hands on management style is one reason why Dutch Oracle is growing in favour with it’s clients.