Investment process

Portfolio construction

The strategy of each new program is based on an overall assessment of the underlying fund managers and their investment strategies. The investment strategy takes into account Adveq's mid-term/long-term segment assessment, its placement capacity with selected fund managers and risk diversification. The emphasis on diversification within each product is core to Adveq's philosophy of seeking to generate stable returns throughout cycles.

Investment process overview

Adveq places significant emphasis on in-depth analysis of investments previously made by a fund manager, external references for verification of Adveq’s fund manager assessment, and global benchmarking based on broad knowledge exchange within Adveq. 

 

  • >First screening

    First screening

    Each investment opportunity is subject to a standardized screening process focusing on investment strategy, track record and team. A senior professional concludes whether such an opportunity passes to the prequalification phase, the first phase of the actual due diligence project.

  • >Prequalification

    Prequalification

    The prequalification is the first phase of the due diligence project and comprises a thorough analysis of the strategy, the portfolio and the investment team and a first risk-return assessment of the fund manager. If the project team and Investment Committee are in agreement to proceed, the due diligence project advances to the qualification phase.

  • >Qualification

    Qualification

    The qualification phase of the due diligence project focuses on the open issues identified throughout the project. It involves comprehensive risk-return assessments and examines all tax, legal and regulatory aspects. The qualification phase concludes with a formal presentation and recommendation to the Investment Committee which ultimately decides whether or not to invest.

  • >Subscription

    Subscription

    Subscription is the formal commitment to a fund and is executed once all open tax, regulatory and legal issues have been negotiated and resolved.

  • >Monitoring

    Monitoring

    Adveq applies a regular in-depth monitoring process at the fund manager and investment company level throughout the life of an investee fund. Adveq actively engages with fund managers to support their development.