At IFSA, we have seen private equity (PE) markets graduate from the outer limits of the economy to the mainstream. Private equity’s net asset value has grown approximately 7.5 times since 2002.
That is about twice as fast as global public equities. But how sustainable is this growth? How do you go about choosing the right private equity partner to manage your investment portfolio? Read on to find out.
1. We play a truly active role
Improved business operational efficiencies and higher corporate growth rates can potentially lead to much higher investment returns.
At IFSA, we play a unique role in the financial landscape and the global economy. In contrast to traditional asset classes, private equity (PE) refers to the capital required to invest in growing a business. Private equity helps clients unlock long-term gains through operational improvements. It results from active governance and investing in business growth.
We serve on the board of directors of the businesses we invest in. And not only from a capital or business growth point of view. We are also active investors in our own funds – the Cornerstone Capital Private Equity and Cornerstone Capital International Funds.
Without exception, we believe in putting our money where our words are. Being on the board of directors gives us, as financial managers, a far greater ability to control outcomes, which equals less volatility and more secured returns.
2. We operate at the cusp of relevance
Private equity is making waves worldwide. A recent article published on Forbes indicates that private equity enterprises are set to grow exponentially over the next couple of years. Cementing the growth phenomenon is no other than Deloitte, reporting that global PE assets under management will reach $5.8 trillion by 2025.
Still, with private equity being a relatively new topic of investor interest, many questions have yet to be answered before widespread critical mass kicks in. For this reason, we encourage new and existing clients to connect with us directly to discuss challenges and expectations candidly. As specialists in family-owned (and operated) businesses, our team has the knowledge and experience to enhance growth and profitability by designing bespoke private equity solutions for competent entrepreneurs.
Want to find out how you can invest in private equity? Read more about the value we can offer investors and the types of clients we serve.
3. We are human to the core
Business is personal – now, more than ever. At IFSA, we are people-focused in everything we do. We are people ourselves and care deeply about bringing out the best in others. It gives us the satisfaction of knowing that the value we add across our range of services is of true worth and that it is changing people’s lives for the better – not just for the individual, but for all persons connected to the prosperity link.
At IFSA, we follow a human-centred approach that puts people at the core of our business model. This means we subscribe to 360-degree care for the well-being of all our people – clients, employees, and independent contractors.
4. We are alternative – and with good reason
Private equity is considered an alternative asset class like venture capital, distressed securities, and real estate. Alternative asset classes refer to those that are not as easily accessed as stocks and bonds in public markets.
Focusing on private equity, we work with the businesses under our banner, seeking to identify and execute strategic levers that drive transformational growth.
Alternative investment types are different from standard asset classes, as they often demonstrate opposite behaviour when compared to stock and bond markets. This trait makes alternative assets like private equity an attractive tool for portfolio diversification.
5. We don’t run from challenges, we embrace them
In terms of selecting a private equity investment partner you can trust, another sharp shift in management style is the way we go about resolving challenges. At IFSA, we have found that the best way to mitigate challenges, whether planned or unplanned, is to chase down the issue at hand and deal with it in the most direct way possible.
Bottom line – companies that proactively identify and respond to challenges will always be in a better position to accomplish goals and reach targets.
6. We built our business on protecting potential
The practice of safeguarding and developing potential runs much deeper than the financial aspect of investing. However, one thing that remains universal about potential, irrespective of which aspect you choose to focus on, will be this – we’ll never know the value of true potential until we push ourselves to uncover it.
From a business model point of view, we exist to protect true potential from the risks of success. And although no investment is without risk, we go the distance to ensure that your money is safe. As a firm and a people, we are personally invested in every part of the process – from managing investments to growing a business.
7. We pride ourselves on integrity and respect
It is very important to note that we do not position ourselves to benefit at others’ expense. We are concerned about helping true potential reach unparalleled levels of success and achieve unimagined growth.
Another reason why you can trust us to be your private equity investment partner is because of our transparent belief system. Of course, in some cases, transparency is required by law and it is non-negotiable. There are also other forms of transparency that are not required by law, but we often find a way to share it anyway, always being guided by our passion for setting potential in progress.
At the end of the day, trust is a key component in ensuring long-term returns. That is why we go beyond traditional expectations to be certain that we deliver value that ventures well beyond returns. However, as much as we appreciate the value of transparency, we also know its dangers in the wrong context. You can trust us to know the difference, then implement wisdom, and never put our clients in harm’s way.
8. We exist to make positive change happen
To us, prosperity means caring about the development of talent, resources, and potential – in both business and people. Invariably, we are most satisfied when we have helped set prosperity in progress because we are people ourselves and we take pride in bringing the best out in others.
Seeing how positive change transforms lives gives us the satisfaction of knowing that the value we add is worth its weight in gold.
That is why we spend a great deal of time and effort to really understand our clients’ unique challenges, before proposing a viable solution. We focus on things like doubts, fears, aspirations and dreams – human elements which often contribute greatly to how business decisions are made. Understanding what our clients want, and how they envision getting from point A to B, is often responsible for leading us to a long-term solution we can trust.
9. We walk away from business that’s not right
One of the biggest indicators of a company’s future success is the kind of business they are willing to take on. Over more than two decades, we have learnt which opportunities to walk towards – and which to steer away from.
Our work at IFSA is highly specific, focusing on only three major target groups: investors, SMMEs, and IFAs (Independent Financial Advisors). The benefit of this focus is that we can create bespoke financial solutions that solve specific problems for our clients because we invest our resources to intimately understand the dynamics of each audience.
10. We lead by experience
Our team has over two decades of investment experience managing traditional asset classes. Now, we are growing into leaders of the private equity space as well. As fund managers, we pay very close attention to the smallest indication of shifts in the market.
Our philosophy is supported by our experience and greatly impacts the way we look at value. Our view is that value is created by solving challenges for our niche audiences – the greater the challenge, the greater the value we provide.
In the end, investing is a trust-based business
The positive effects of trust on investments are worth noting as highly significant – both economically as well as statistically. For this reason, we aim to connect plainly and openly with our clients as often as possible. On average, it is a good rule of thumb to meet with us a couple of times a year to evaluate your investment.
We hope you enjoyed learning about the reasons why you can trust us to be your private equity investment partner. We also hope you liked finding out more about how to choose your financial manager in the future, knowing that they will help you create sustainable growth for the long run.
Due to the nature of our business, some things are still best said in person. When you are ready to learn more about the benefits of private equity investing, contact us for a free, no-obligation consultation. We are passionate about setting prosperity in progress and delivering value that reaches well beyond returns.
IFSA (Pty) Ltd Registration No. 2000/005153/07 An Authorised Financial Services Provider Licence No. 43337