North Sea Capital: International Asset Protection







 

Lauge Sletting of North Sea Capital, an independent private equity adviser at the marcus evans Alternative Investments Europe Summit 2012 and Middle East Alternative Investments Summit 2012, shares his views on asset protection in today’s uncertain economic environment.


Interview with: Lauge Sletting, Managing Partner, North Sea Capital



FOR IMMEDIATE RELEASE


It is crucial for investors to ensure asset protection and be aware of future inflation risk and recessions scenarios, says Lauge Sletting, Managing Partner, North Sea Capital. Portfolio diversification will allow investors in the alternatives space to reduce risk and successfully plan for the future, he adds.  


From an independent private equity adviser at the upcoming marcus evans Alternative Investments Europe Summit 2012 and Middle East Alternative Investments Summit 2012, Sletting talks about how investors could benefit from the negative cycle that has arisen from the economic crisis.


How can investors ensure assets are protected in today’s uncertain environment?


Several private equity funds are coming back into the market, but due to the economic climate and debt crises, many investors are reluctant to make any commitments.


For the most part, investors can guarantee asset security by investing in companies with strong market positions and the ability to mark-up prices. Companies that are leveraged appropriately will be able to reduce debt overtime and safeguard assets from inflation.


This is one of the advantages of investing into private equity, as managers are able to control the level of leverage and manage true and inflationary scenarios. Looking at inflation is critical, as we see increasing risk due to the immense money supply that has arisen from debt structuring and the capital issues at national banks. The other advantage of control investing is that private equity managers transform companies to be more profitable and even in a down cycle, add alpha to the returns.


From your perspective, why is portfolio diversification essential?


Growth can come and go in all industries. We have seen this through emerging markets and non-cyclical trends, such as the telecom and Silicon Valley boom. Having a diversified portfolio allows investors to capture a range of developments around the world. Nevertheless, diversification is not only geographic, but also specified to corporate governance and management experience.


There is a high degree of developed corporate governance in Northern Europe, and as a result many organisations in the region are export orientated, benefiting from growth in emerging markets such as Asia and Latin America. Therefore, investing in these companies that have an awareness of diversity would allow investors to benefit from the growth that they are experiencing in emerging markets, instead of investing directly into markets which can prove to be risky.


The major hazards in the alternative investments space today are corporate governance risk, geographic risk and risk in the private equity arena where there are many undeveloped teams. We are seeing many new teams that are not as mature and cohesive as in Northern Europe and the US.


How can investors recognise successful fund managers?


Investors and investment firms alike must be ready to identify successful private equity managers as soon as they create their first fund. For example, our due diligence processes focus on alpha and the added value generated from experienced private equity managers. We are in the position to capture, test and prove that specific managers have generated returns that are better from the general market. Even in the downturn, the managers we have selected have been able to add value to companies by increasing their profit beyond their peers.


What advice would you give to alternative asset class investors today?


Focus on global investing instead of one specific area. Explore investment opportunities in Europe, Asia, Latin and North America in order to achieve a successfully balanced portfolio that focuses on emerging and developed markets. A mix of expansion growth funds and turn around investments as a supplement to a core mid-market buyout portfolio will add to that solidity.


Having the patience to wait for access to the right private equity managers in the market is also crucial. All of these factors together should generate a high, stable private equity return of at least 20 per cent per annum.



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



For more information please send an email to info@marcusevanscy.com or visit the event websites below:


Alternative Investments Europe Summit 2011: www.aie-summit.com 


Middle East Alternative Investments Summit 2012: www.meai-summit.com


marcus evans group – investment sector portal


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About North Sea Capital

NorthSea Capital, based in Copenhagen, is a leading independent private equity adviser that serves institutional, corporate and high net worth clients including some of the largest Nordic pension funds. Providing investors with access to top tier private equity managers as well as advisory services within the private equity asset class.


www.northseacapital.com


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