Real Assets and Private Equity Investments
We advise individuals and corporations to diversify their overall wealth by investing a significant part in tangible assets.
The most common way to start investing in tangible assets is the purchase of residential property or office premises, followed by additional properties for investment purposes. But real estate is not the only interesting tangible asset investment target; we advise on investments in agricultural land, stocks of gold or other precious metals, diversified investments in venture capital, arts, luxury cars or watches. These investments are by nature more illiquid than financial investments or insurance contracts. In return, they provide sustainable and stable returns, ideal for the long term financial planning of both family wealth and business investments. In addition to an attractive income, tangible investments are usually negatively correlated to financial investments, stabilizing the value of a portfolio in times of financial or geopolitical crises.
Atlantic Financial Group aims at helping private and institutional clients invest, disinvest and manage unlisted tangible assets. We identify investment targets with a solid track record and that are not directly linked to financial markets. Our clients choose whether they prefer to invest directly, through a dedicated structure in their name, or indirectly, leveraging on our existing book of assets.
Direct investment through a dedicated structure:
The first step of the investment process is to set up a discretionary buy/sell mandate based on our clients’ specific wishes. We offer a dedicated and optimized tax and legal support having regard to the buyer’s or the seller’s personal and professional situation. We take care of the coordination with the various experts involved in the transaction, such as notaries, accountants, banks, insurance and real assets specialists.
The second step is to identify the assets best suited to meet our clients’ requisites. The search is conducted within Atlantic Financial Group’s vast network of business partners and we only choose investment targets coming from trusted sources.
As a following step, we help our clients obtain financing, if requested, and negotiate the best terms. After conclusion of the transaction, we are able to monitor the investment over the years, issue periodic reports and design an exit strategy at a later stage.
Investing through our existing book of tangible assets:
Our clients may decide to invest in our existing structures based in Luxembourg. These structures cover different areas of expertise, mainly in Europe and North America. Each structure constitutes a diversified portfolio of mainly direct investments. At times, we may invest through specialized investment funds:
• Technology Venture Capital – participation in the share capital of unlisted companies.
• Real Estate – commercial real estate.
• Agriculture – investments in businesses and activities in the agriculture sector with a proven track record.
• Commodities – precious metals and soft commodities.
• Environment, Sustainability and Governance – businesses and projects in the field of social and environmental responsibility and sustainability.
A team of experts in each field meets on a monthly basis to review and validate our investment portfolio and conduct enhanced due diligence on new projects. Each client can request full details on investments, investment process and management fees. The team is partially incentivized based on the performance of the instruments.
The assets held in the various investment portfolios are by nature illiquid and must be considered as long-term investments (7 to 10 years).
Given that taxation on income from real assets is generally based on the rules of the country in which those assets are located, the tax treatment of the various investments may vary. Our team of experts will look to keep these tax implications to a minimum, having regard to the legal and tax situation of each investor.