Alternative Asset Funds
Our Alternative Asset Funds range allows investors to diversify their portfolios through managers and strategies which can usually only be accessed by institutional sized clients due to high minimum entry levels.
We focus on fund strategies and asset classes which are uncorrelated with equity and bond markets and which can enhance portfolio diversification.
These include emerging asset classes such as litigation funding, as well as better known alternative asset classes such as private equity (primary and secondary strategies), venture capital, mezzanine debt, special situations, real estate and specialist hedge funds.
Target returns from Alternative Funds
Typical target net returns to investors are circa 1.5-2x money invested for illiquid funds and 12-15% IRR for liquid funds. Where appropriate, funds may pay an annual yield.
Case Study: Therium - commercial litigation funder
Therium Capital Management provides funding to pursue commercial litigation claims and class actions against corporates, for example, the case against VW and the emissions scandal. In return, if the case is successful it takes a share of proceeds (be this a court awarded sum or an out of court settlement). The asset class is wholly uncorrelated with any other and target net returns are c2x money invested, with the potential for early distributions.
Therium now only advise large institutional funds but Connection Capital clients have been able to invest in units of £25,000 and have done so, to the tune of more than £30m, across four vehicles since 2013.
We look for alternative funds meeting the following criteria:
- Strong and balanced fund management teams
- Experience in all aspects of the proposed investment strategy
- The ability to create value
- An exceptional track record
- Consistency in investment strategy
- Proven investment discipline
- Motivation to maximise value for investors
We present top tier performing funds that our clients can not access elsewhere. Before we offer these funds we conduct thorough due diligence on the fund management team, the investment strategy, the track record and the investment process. We also benchmark against other fund managers, conduct reference checks and negotiate the terms.
Our intention is to offer a range of institutional-grade fund opportunities which are diversified by asset type, fund type, strategy, vintage year, sector, size and geographic region.
View Alternative Fund portfolio