Adveq’s investment philosophy is based on the belief that the most productive long-term private market investment opportunities require a unique set of skills, resources and focus to effectively research, source and diligence investments. These traits have been particularly important in the environment since 2000, which for any investor often meant choosing between high volatility and high valuations.
Our investment philosophy focuses on the following elements:
Fundamental value creation
For us this means favouring strategies and segments that practice active ownership, develop new business models and products, expand into new markets, build and develop companies or refocus and reposition them.
Capital market independence
Fundamental value creation implies that we look at private market strategies that are less influenced by the capital markets. Adveq’s focus is on private equity strategies and segments where capital is scarce and can mean higher return potential.
Global market coverage and benchmarking
We look at specialized private equity strategies and segments on a global scale. This is not only important because the opportunities are global, but because applying globally consistent performance criteria also enables us to obtain a more complete perspective of the risk and return posed by each private market segment.
Importance of fund managers and their specific competences
We believe that one of our core strengths has been our fund manager network. We focus on identifying and building relationships with highly specialized managers and the leading managers of tomorrow. It is those close relationships and the information advantage they provide that enable us to source secondary and co-investments in line with our investment philosophy.
Robustness and anti-fragility
Adveq applies various filters across the portfolio, segment, deal levels to ensure maximum independence from undesired macro-economic and financial market developments. These filters also test for the ability to benefit from market dislocations and turmoil.
High ethical and governance standards
We firmly believe in investing only where capital is used in the right way. Beyond the ethical dimension we also believe that it can benefit the financial dimension. Driving environmental, social or governance (ESG) best practices can improve the investment performance of portfolio companies because it can reduce risks and increase the exit valuation potential.