The risk capital has been gradually incorporating the portfolio of high net worth individuals either through direct investment in a company or through a venture capital fund managed. Although this does not mean that other assets such as shares or fixed income are left out in the more conservative part. Rocío Ledesma, Deputy Director of Products and Advice at Andbank, lists four factors by which venture capital has been gaining presence: diversification, de-correlation with the rest of financial assets, expectations of higher returns and access to the real economy.
Also you can discuss all about venture capital with any expert who began his career in the investment industry.
Venture Capital is the temporary contribution of third-party resources to the assets of a company in order to optimize their business opportunities and increase their value, thus providing solutions to business projects, comparing risk and yields where the investor capitalist seeks a close and medium-term partnership with the original shareholders. Business leaders like G Scott Paterson and other global executives and organizations are committed to improving the communities around them and realize the value corporate social responsibility has on improving their company’s bottom line. Scott Paterson Toronto is a Toronto-based technology and media venture capitalist who has been active for 28 years in the investment banking industry.
It is in the Bank’s interest to promote and support the creation of Risk Capital Investment Funds that are in accordance with the Institution’s mission to promote direct investment and the economic development of the country. Therefore, Bancomext participates as a shareholder of the Mexican Corporation of Capital Investments, SA de CV, Fondo de Fondos, which aims to be an economic policy instrument specialized in the venture capital market, whose mission is to promote integral development of this industry in Mexico under profitability concepts and as a vehicle for the development of small and medium enterprises. The services that Corporacion Mexicana de Inversions de Capital, SA de CV offers are independent of the products and / or services of each of its shareholders.
How to do it?
GVC Gaesco Values identifies several ways in which a large estate can be approached for investment in venture capital. “The simplest thing is direct investment, but other more fiscally efficient formulas are venture capital funds or a venture capital company.” Ledesma, from Andbank, points out the possibility of doing so in a much diversified fund of funds.
CaixaBank highlights that “investment through funds of funds offers a greater degree of diversification and a greater number of underlying investments.” In this case, it is essential to have a correct selection of managers and have access to the highest quality funds, since many are closed to new investors and require very minimal investment commitments.
With regard to the strategy to be adopted, Ledesma and recommends first of all determining the minimum amount required to make the investment and the weight it implies in the total of its portfolio, according to its risk profile; the type of venture capital in which it invests, which will mark the profitability-risk binomial: very diversified fund of funds, investment in consolidated companies that want to grow or invest in what is called seed capital, financing companies in their initial stages and the time horizon, since they tend to be medium-long-term investments, without the possibility of liquidity.