Partners Group:
Recognising Investment Opportunities within the Secondary Market






  Erik Kaas from Partners Group, an investment management firm at the marcus evans European Pensions & Investments Summit 2012, on prospering from the secondary market. 
 
Interview with: Erik Kaas, Partner, Partners Group



FOR IMMEDIATE RELEASE


Investors are exiting positions at a discount due to changes in the regulatory environment or their portfolio strategy, which is creating immense opportunities for other investors, says Erik Kaas, Partner, Partners Group. “Market players with an integrated approach, proprietary sourcing channels and timely in-house execution capabilities will be able to take advantage of such market cycles,” he adds.


From an investment management firm at the upcoming marcus evans European Pensions & Investments Summit 2012, Kaas discusses how to take advantage of the investment opportunities in the secondary market.


What is your long-term macroeconomic outlook? How can investors be positioned for growth, bearing in mind the continuing weak global economic recovery?


Already in 2009, we forecasted a stagflationary scenario with three to five years of a stagnant economic environment in the Western world, followed by increased inflation at the tail end, which would manifest in the form of asset inflation without classical wage inflation. This led us to adjust our investment strategy accordingly, with a focus on stable businesses in the defensive sectors and inflation-linked asset classes, such as infrastructure and real estate.


Although our forecast in 2009 was right, it was too optimistic. At the end of the day, the European debt crisis can only be solved by solidarity within the eurozone.


The European Central Bank will begin buying up volumes of European bonds from weaker member states, which will result in an unparalleled increase in the capital supply. Financially healthy nations such as Germany or the Netherlands will end up paying for the rescue mission through increased debt levels and higher financing costs, while the whole eurozone will have to cope with asset inflation followed by classical wage inflation in three to five years.


How can investors successfully identify the right assets? How have investing strategies evolved post crisis? 


A global vertical depth approach is essential. Investors must drill down into the sub-sector level and into individual portfolio companies, taking into account valuations, leverage and relative industry and marketing positions to identify defensive, cash-generating companies and assets with strong revenue visibility. This is the tactic for identifying the right assets.


However, investors should not overlook the fact that the current market environment offers attractive opportunities. Many new opportunities are arising from the secondary market when existing investors are exiting positions at a discount because of changes in the regulatory environment or in their portfolio strategy. Market players with an integrated approach, proprietary sourcing channels and timely in-house execution capabilities will be able to take advantage of such market cycles.


What long-term investment strategies could you share?


Investors can prosper by keeping a focus on direct investments, primaries and the purchase of portfolio companies on the secondary market. Investing in this manner provides maximum advantage of market opportunities at a specific stage of the economic cycle.


In addition, we offer the whole range of private markets strategies from private equity to private real estate, infrastructure and private debt which allows investors to choose the most attractive strategy at a given point in time and to benefit from synergies and information advantages.



Contact:
Stacey Melvin
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 400
Email: press@marcusevanscy.com



About the European Pensions & Investments Summit 2012


Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes visionary presentations and interactive forums on looking beyond volatility to pinpoint innovative investment approaches, modernising risk models and delivering returns in the new era of pension investing.


For more information please send an email to info@marcusevanscy.com or visit the event website at www.epi-summit.com


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About Partners Group


Partners Group is a global private markets asset manager with USD 28 billion under management in private equity, private real estate, private infrastructure and private debt. Over 500 professionals based in 15 offices around the world focus on private markets investments on behalf of an international clientele of institutional investors. Partners Group is listed on the SIX Swiss Exchange with a clear majority owned by its employees.


www.partnersgroup.com


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