The solution will allow clients to diversify their investments with a tangible asset class that has limited correlation to financial market trends.
Edmond de Rothschild hopes that this new fund of funds will give more of its private clients access to the private equity universe and help them diversify their private equity allocation.
For Vincent Taupin, chairman of the executive board at Edmond de Rothschild (France), "Quadrant is a perfect illustration of the Group's ability to offer its clients a broad variety of investment solutions and its constant quest to deliver innovative, original and secure investments."
For Blandine Evrard, a private banker at Edmond de Rothschild (France), "Quadrant will give more of our clients access to the Group's established private equity expertise, allowing them to benefit from a diversification solution with an attractive risk/return profile at a time when markets are extremely volatile and returns very low."
AN IN-HOUSE FUND OF FUNDS
The fund of funds covers several private equity segments such as venture capital, development capital, LBOs and co-investments and provides broad geographical reach (France, Europe, China and the US). Its strategy also targets indirect investment in more than 85 companies in traditional economic sectors, life sciences and town and country planning.
Quadrant is an FPCI* which invests in six of the Group's specialist franchises, some of which have performed well in previous fund vintages. Targeted breakdown
Biodiscovery 4: 16.7%
Winch Capital 3: 16.7%
EdR PE China 2: 10%
Ginkgo 2: 6.7%
Cabestan 2: 25%
Eres 3: 25%
Please note that, at the time of writing, some funds like Ginkgo 2, ERES III and Cabestan 2 have not yet been raised/created. Past performance and volatility is not necessarily a guide to future performance and volatility and is not constant over time.
UNIQUE PRIVATE EQUITY KNOW-HOW
Edmond de Rothschild has been a prominent player in unlisted investments for more than 25 years, first investing the family's own funds and subsequently involving third party accounts.
"Private Equity is not only strategic, but also emblematic for our Group, which remains one of the rare banking institutions to have kept this business in-house. Our Private Equity practices faithfully mirror our DNA as a committed investor and our long term vision; we view these investments as essential as they help explore new territories and fund tomorrow's growth themes. Edmond de Rothschild's approach to this business ensures that the interests of our Group, partner teams and investors are always fully aligned", said Ariane de Rothschild, chair of Edmond de Rothschild Group's executive committee and chair of Edmond de Rothschild Private Equity's board of directors.
The Group's private equity division is run by Johnny El Hachem, employs more than 100 investment professionals and has more than EUR 3bn under management. Its teams operate throughout the world, rolling out 10 complementary investment strategies focused primarily on responsible finance, innovation and SME funding.
Vehicle: Fonds Professionnel de Capital Investissement Fiscal
Investment company: Edmond de Rothschild Investment Partners
Target fund size: € 30m max
Minimum subscription € 100,000
Subscription period Q4 2015 –Q1 2016
Fund life: 10 years (+2); no redemptions during the fund's life
Management fees **: 1% of commitments during 5 financial years, subsequently 1% of the fund's net asset value
* FPCI: professional private equity fund
** The underlying funds also charge annual management commissions of between 1.5% and 2.3%