Family Office Investor 10 - March 2020

The Alternative Investment Issue

Is now the right time to diversify?

ISSUE 10

––– CONTENTS –––

32

8

Why a more established and accessible

The Real Deal

crypto market will develop

8

Crypto maturity creates an interesting investor option

PHOTO: ISTOCK

WEALTH MANAGEMENT

14

Mixing tradition, tech and relationship

FEATURES

12 Worldwide misinformation concerning US economic outlook

38

Toshio Masuda explains his thinking

A new global network has been created

Stronger together

46

A new focus powered by people

Striving for Salvation

20

24

PHOTO: ISTOCK

in different parts of the world

New emerging markets in the luxury sector

PHOTO: ISTOCK

for foundations that fund conservation

14

Kara Garland on her mission to prevent

ALTERNATIVE INVESTMENTS

sex trafficking and rescue its victims

48

18

The sound investments of the Fine Watch Club

A warm welcome

PHOTO: ISTOCK

Limited series, exclusive events

20 Earth Capital’s approach to Sustainable Development

REAL ESTATE

A different kind of investment

52

24

Castle Residences, the only apartments in the sea

The challenge of investing in healthcare

An island lifestyle in Limassol marina

Is it the right fit for Family Offices?

56

28

32

Swissmade meets Monaco

26

BIT MONACO 2020 real estate forum

Start-up success is a team game A collective route to success

MONEY TALKS

28

58

101 ways to lose money in deeptech angel investing

Interview with James Palmer

Complex risks, but big opportunities

executive of Stratal

38

52

Q&A with the founder and chief

Take your favourite magazine everywhere on your phone. Get our new app on the App Store and Play Store, search for Private Office App

PRODUCTION DIRECTOR

ART DIRECTOR

DIRECTOR

BUSINESS DEVELOPMENT

DISTRIBUTION

Kieran Flatt

Simon Fevyer

Xavier Calloc’h

Monaco: Andrea Dini

Renzi Communication Sarl

xavier@investor-media.com

andrea@investor-media.com

CH-Genève

+44 (0)7770 917 239

+33 675 44 19 51

+41.79.689.04.65 raphael@renzicom.com

Articles and other contributions published in this magazine may be reproduced only with permission from the publisher. The publisher, Investor Media, accepts no responsibility for any views or statements made in the articles and other contributions reproduced from any other source.

4

FAMILY OFFICE INVESTOR

––– COLLECTORS –––

FAMILY OFFICE INVESTOR

5

––– WEALTH MANAGEMENT –––

6

FAMILY OFFICE INVESTOR

PHOTO: ISTOCK

Wealth Management

FAMILY OFFICE INVESTOR

7

––– WEALTH MANAGEMENT –––

The Real Deal How one investment firm is mixing tradition, tech and relationship to build something special

P

aradyme Investments is a boutique

Most family offices

private equity firm and multi-family

have investments

office, born from decades of

in real estate

experience in the real estate industry

and the sum of experts with multi-disciplinary backgrounds ranging from land acquisition, entitlement, project and construction supervision to development, debt financing, complex investments and wealth management.

Ryan Garland has an unparalleled ability to understand the real estate market and to consequentially shift his strategic thinking – that’s the foundation on which he has built his stellar career. We met with Ryan during the Context Family Office Summit in Miami.

Ryan, why did you establish Paradyme?

granting them access to exclusive experiences to mark their most

We began with residential properties then shifted to luxury real estate.

significant life events.

After the crash in 2008, it became obvious commercial real estate would

With sponsors the relationship goes beyond identifying the best in

be the soundest strategy for our investors because assets such as multi-

class to collaborate with, from a business perspective we enter our

family developments and hospitality had weathered the storm.

projects on a joint venture basis and do so for numerous reasons. Being

We designed Paradyme to respond to the ever-changing real estate

a partner with a sponsor means having the ability to be involved in the

market, established strict vetting processes with respect to the sponsors

decision-making process at every level, overseeing day-to-day construc-

with whom we engage, and the projects we fund. And we built propriet-

tion progress and as such deploying funds in a supervisory role.

ary tools combined with world class software solutions to build pro-

The difference also lies in our sophisticated back office operations

formas and financial stress tests. We further strengthened our risk

division which allows us to evaluate a deal in ways many other offices

mitigation and asset protection with an in-house governmental affairs

cannot, if only for our extensive in-house manpower and the breadth of

division, and partnerships with leading law firms both domestically and

their skill sets, combined with state-of-the-art technology. We had to

internationally.

build this infrastructure to process the dozens of proposals we receive on a weekly basis, of which we only consider a handful. Based on the

Ryan, what makes Paradyme different from other private equity

reputation of our challenging vetting processes, we have also opened

firms or multi-family offices?

our due diligence and underwriting services to other single family, and

I think at the core, lifelong relationships with our investors is the founda-

multi-family offices.

tion of Paradyme Investments. Our investments have an average five to

8

seven year term, and our clients typically roll over their gains at the

There is a lot of talk of ESG (Environmental Social Governance), how

conclusion into one of our latest opportunities. We take relationship

does this translate into Paradyme Investments’ deal selection and

building to great lengths, specifically to answer our investors’ enquiries

overall business philosophy?

as to their investments and go beyond everyday courtesy by assisting

That’s a great question! Consideration for ESG, which was an after-

them with their travel needs, dinner reservations, and with our partners,

thought even a decade ago, has taken front and center position not just

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

Ryan Garland has made Paradyme an agile player in this volatile market

in real estate, but for all investments. Whether a result of the 2008 crash, or a generational consideration fueled by millennials is a difficult question to answer but it’s undeniable that this consideration will only grow.

Why ESG fits into the Paradyme Investments core philosophy is better understood when paralleled with one of Paradyme Investments’ founding principles, making real estate investments accessible to a broader audience. We established Paradyme to give individuals and their families, a better financial future; it stood to reason that the projects we fund should contribute to a better overall future, too, such as a healthier and cleaner environment, for generations to come.

‘Lifelong relationships with our investors is the foundation of Paradyme Investments’

We are currently funding a LEED Platinum (Leadership in Energy and Environmental Design) certified mixed-use condo project in Denver and reviewing several other developments which integrate green building materials, health and wellness amenities, renewable energy, water conservation and recycling for example. As we develop deeper relationships with family offices, we have found that ESG is a primary consid-

FAMILY OFFICE INVESTOR

9

––– WEALTH MANAGEMENT –––

‘Everyone at Paradyme is devoted to our investors, to the responsibility of their investments, and lives by our core values of integrity, transparency, authenticity and significance of relationships’ eration in their investments reviews, leading to the discovery of new

basic functionality to include health monitoring, environment monitoring

technologies, and invaluable partnerships for Paradyme Investments.

sensors to optimize wellness, water purification, vitamin infused water, arcadian rhythm lighting, and hospital grade air.

Paradyme is deeply invested in technology, why is it so important to you?

Lastly Ryan, why should investors choose Paradyme?

Look around you. Technology has permeated every bit of our lives. I have

You mean aside from all the answers I have given you so far! (Ryan let out

an intelligent home system that allows me to control every aspect of my

his warm laugh at this answer!). The simple answer is EVERYONE at

home from my phone, even when I’m across the world. I can conserve

Paradyme is devoted to our investors, to the responsibility of their

energy by regulating the heating and cooling, ensure my family’s security

investments, and lives by our core values of integrity, transparency,

with cameras inside and outside my home, set invasion alerts, control

authenticity and significance of relationships. We have built a culture of

the pool and spa, turn on lights, open my garage door, and much more!

excellence and accountability which goes beyond the norm, a familial

At the office we use intelligent whiteboards and technology that allows us to be connected to our investors 24/7. We use software solu-

10

atmosphere where all team members communicate respectfully and support each other…we are even known to occasionally have fun!

tions to support our due diligence and underwriting activities. We are

It is the sum of our people, processes, deal evaluation criteria, and

very involved in the artificial intelligence arena as it pertains to invest-

choice of development partners which has allowed us to historically

ment opportunity tracking, and identifying development zones before

reach yearly average returns of 17.7% to our investors. There are no

our competition. Fintech is another area we explore with applications

guarantees in the investment arena, that is just a fact. Investors should

ranging from cryptocurrency and blockchain to secure our investors, to

consider Paradyme because of the great lengths we go to in terms of risk

hosting. In our developments we consider fully automated smart home

mitigation, asset class selection, and an ability to rapidly implement

technology, for commercial and residential projects, which go beyond

Paradyme shifts to adapt to an ever evolving real estate market.

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

FAMILY OFFICE INVESTOR

11

––– WEALTH MANAGEMENT –––

Worldwide misinformation concerning US economic outlook for 2020 Toshio Masuda, Samurai Lecturer, Commentator and International Economist, explains his outlook for the economy

T

here is little doubt that the current flood of headline news concerning the US economy has been manipulated almost entirely by President Trump. Trump blames the mass media for

being the source of fake news, while in truth he is the topclass manipulator of information fed to the public, particularly about politics and the economy. Trump is determined to win the presidential election in November 2020.

Forces that will decide the outcome of the race for the

White House include Wall Street and share prices. No matter what happens to the US and the world economy, for Trump to win it is essential that the NY stock market keeps soaring right up to Election Day in November.

On 5 February 2018 the President appointed Mr. Jerome Powell as the FRB chairman. Right from the outset Trump has never stopped criticizing his appointee and insisting on zero interest rates, while Powell kept raising the rates

‘The US economy finds itself at a critical point’ throughout the entire 2018. This battle of wills continues even now, when Powell has finally begun to lower the rates.

In the eyes of the general public Trump and Powell appear to be like dog and cat; while in reality they are more like husband and wife.

The stock market can be seen as a fishpond: When the amount of water increases and its level rises, the fish become livelier due to the increased oxygen supply. Lower interest rates allow fish to swim more freely, in a friendlier environment. Quantitative easing boosts share prices, while low interest rates create economic boom.

At present the US economy finds itself at a critical point.

A tight labour market pushes up hourly rates, leading to increased consumer spending. The unemployment rate is at one of its lowest lowest points for years, driving consumer prices up.

12

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

‘It is virtually certain that the year 2021 will mark the collapse of the US stock markets’

The coronavirus has slashed the imports from China – the biggest exporter to the US – creating scarcity of some goods, which again drives up the consumer prices.

Powell should prepare for this and think about raising interest rates. Yet Powell seems to be heading straight in the opposite direction, which can only be explained by the fact that in reality he is the “devoted wife” of Trump.

The Fed has the power to control the pond water level, no matter what. Consequently, we shall see the Dow rising to $40,000 around Election Day. So why not take advantage of Trump’s shenanigans and the behaviour of the Fed, which heedless of the real state of US and world economy juggles its monetary policy to suit Trump’s interests? It is virtually certain that the year 2021 will mark the collapse of the US stock markets.

My advice is: make money now, and enjoy luxury life in 2021, when hordes of investors (excluding of course the readers of my commentary, Straight From The Shoulder) will be gasping for breath!

Toshio Masuda has commented on economic and political affairs since 1995

FAMILY OFFICE INVESTOR

13

––– WEALTH MANAGEMENT –––

New emerging markets in the luxury sector Luxury investment has a new focus with emerging markets powered by people WORDS BY CORALIE OMGBA, MAGNATES PLACE FAMILY OFFICE

P

roposed by Goldman Sachs in 2011, the acronym BRIC referred to a group of four countries consisting of Brazil, Russia, India and China, which are taking an increasingly important share in the

global economy.

With the emergence of new economies, notably South

Africa in 2011, the acronym underwent a slight change with the addition of an "S" by becoming BRICS, but the idea was just the same, brave new global markets and opportunities.

We now also have another group of leaders in the global economy: the N-11s also called Next eleven.

BRICS, MINTS & Population Power The BRIC nations held political and economic hopes

Coralie founded Magnates Place after a career in banking

powered by nearly thirty-two percent (32%) of the world's population. But after a decade of ascending recession,

erica, thanks to its strong domestic demand and the rapid

these nations have suffered the full brunt of the financial

expansion of credit, although it is only half the size of the

crisis between 2007 and 2008, from which they have

Brazilian economy.

struggled to recover.

This downturn has seen the emergence of the MINT

Indonesia, on the other hand, although its economy is significantly lower than that of India and China, represents

economies, composed of Mexico, Indonesia, Nigeria, Egypt,

significant growth potential as the "Asia factory". As for

and Turkey. These states have been designated as those

Turkey, it represents a potential for growth in the "Europe

that may well take over from the BRICS. The countries that make up the MINT have common characteristics including;

● ● ● ● ●

factory". Nigeria has the largest economy in sub-Saharan Africa, thanks in part to its oil activities.

From the above, we can therefore conclude that the

Strong economic growth,

MINT would be the perfect representation of the new

Diverse economic profiles,

emerging economies. We have two study cases from the

Available raw materials,

group - Mexico and Nigeria.

A fast-growing population, But above all their political commitments.

Mexico

Countries such as Mexico, Indonesia, Nigeria and Turkey

This country, which according to OECD projections, will be

are considered model economic cases, again supported by

the seventh largest economy in 2050, is already is con-

dynamic demographics. With four continents: Africa,

sidered the leader of the luxury sector in Latin America, and

Europe, Asia and America, MINT has nearly 644m people.

ahead of Brazil.

Mexico, for example, represents the future of Latin Am-

14

FAMILY OFFICE INVESTOR

Mexico has made sales in the luxury sector of more

––– WEALTH MANAGEMENT –––

Mexico, according to OECD projections, will be the seventh largest economy in 2050. The country is already considered the leader of the luxury sector in Latin America, ahead of Brazil

FAMILY OFFICE INVESTOR

15

––– WEALTH MANAGEMENT –––

Nigeria continues to further expand its private sector, with a boom of companies in the fields of finance, banks, building and insurance

than seven billion dollars in 2017 and statistics predict sales growth to more than 32% by 2022. With more than 125,000 Mexican HNW, Mexico leads the way in Latin luxury evolution, accounting for 4.5% of the sale of luxury products in the world, which places it 7th in the global list.

It should also be noted that the country has experienced this eco-

‘By 2050, Nigeria is projected to become the world’s 15th largest economy’

nomic rebound since 2012, and that this is helped by its main growth engine, namely its own private consumption, which in 2016 accounted for 68% of its GDP. Mexico's growth is also due to the decline in its unemployment rate and the increase in bank lending. In 2015, 47% of Mexican households

related to the desire to diversify its economy (non-oil sector).

In addition, the country continues and plans to further expand its private sector, which is also in full swing with the boom of companies in the field of finance, banks, buildings, insurance.

represented the middle class, or about 14 million households. By 2030,

By 2050, Nigeria is projected to become the world's 15th largest

more than 18 million Mexican households are expected to fall into this

economy, with a booming consumer market set to grow with forecasts of

category, representing the totality of households in the country, a

billions of dollars in 2030.

potential target for the luxury sector.

With a middle class of 40 million people being the largest consumer

The Mexican population, which is gradually getting richer, is now

market on the African continent, a connected population with an Inter-

increasingly turning to high-end products and this trend is expected to

net penetration rate of up to 49% in 2018, a social network penetration

increase by 6% in the coming years. This is why many brands are trying

rate of 19% in 2019 according to a study, and a growing number of HNWI

to attract this new clientele, including the creation of several high-end

that is expected to reach more than 17,000 by 2020.

shopping malls and the presence of physical boutiques of luxury brands across the country.

Nigeria's $0.4 trillion luxury sector is still an embryonic market compared to other but emerging markets. Indeed, the country already plays host to famous international brands across Swiss fine watchmaking,

Nigeria

jewellery, luxury automotive, champagne and spirits houses or fashion

Nigeria, Africa's largest oil-producing country and Africa's most populous

accessories, either through the distribution channel of own shops or

country, has become the continent's economic backbone thanks to its

through official distributors in the chic neighbourhoods of Lagos.

economy. In 2016, for example, Nigeria's economy was $400 billion, despite the many problems it faces.

As challenges we note the security problems but also the problems

16

FAMILY OFFICE INVESTOR

Another indicator, this time on a continental scale, is that the rise of African private banking is expected to increase by 7% annually over the next 10 years. The wealth management sector in Africa is growing.

––– WEALTH MANAGEMENT –––

FAMILY OFFICE INVESTOR

17

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

A warm welcome to The Alternative Investor I would like to welcome you all to the first installment of The Alternative Investor. We hope it will become an important part of your media diet.

It would be remiss not to thank Xavier and the wider Investor Media team for giving me the opportunity to share the stories of some amazing businesses we have had the pleasure of collaborating with over the last few years.

This magazine will serve as an extension of Stratal's strategic focus, encompassing Healthcare, Digital Assets, Deep Tech and Sustainability. I believe that this also fits neatly within the expansive Investor Media publishing stable, as well as filling a niche in the media landscape.

I would also like to thank our wonderful contributors, given that this is a launch product, I am delighted with the quality of the articles and the calibre of their writers. Our selection includes pieces from the leading fintech platform, eToro; deep tech VC, Deep Science Ventures; pre-seed angel syndicate, Dot Matrix; sustainability investing giant, Earth Capital and our own healthcare guru, Dr Deepak Kotak.

For more information on any of our contributors or any thoughts you might have on this our first, abridged, issue please do get in contact via info@stratal.co and follow us on Instagram @altinvestormag.

Thank you for reading.

James Palmer Founder and CEO, Stratal

Contributors Etoro

Katie Evans,

Earth Capital

PR & Communications Manager Dot Matrix

Matthew Stafford, Founder

DSV

Dominic Falcao, Founder

Richard Burrett, Chief Sustainability Officer Jim Totty, Director of Investment

Stratal

Dr Deepak Kotak, GM Healthcare

INFORMATION, NOT ADVICE Our publications do not offer investment advice and nothing in them should be construed as investment advice. Our publications provide information and education for investors who can make their investment decisions without advice and should not be seen as a recommendation to use any particular investment strategy.

18

FAMILY OFFICE INVESTOR

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

FAMILY OFFICE INVESTOR

19

––– ALTERNATIVE INVESTMENT ––– ––– WEALTH MANAGEMENT –––

Earth Capital’s approach to Sustainable Development A different kind of investment is needed for a fast changing world WORDS BY RICHARD BURRETT, CHIEF SUSTAINABLE OFFICER, AND JIM TOTTY, DIRECTOR OF INVESTMENT AT EARTH CAPITAL

A

s the world we live in changes, so the way we plan for the future must also adapt. Family Offices have long had a KPI on the successful intergenerational transfer of wealth, but if by 2100 many of our major cities are flooded and uninhabit-

able and there are billions of climate refugees roaming the planet, then your grandchildren might not be that grateful if your family office only focused on financial metrics in 2020.

Instead, impact investors with a successful track record, like Earth Capital (EC), can offer families superior financial returns combined with

Your investments don’t have to pollute the planet.

There is a more enlightened way

‘We offer superior financial returns with positive environmental and social impact for the benefit of future generations’

PHOTOS: ISTOCK

to profit

20

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

Impact investors like Earth Capital can offer good returns and have a positive impact

positive environmental and social impact for the benefit of future gener-

We recognise that whilst our investments inherently deliver a targeted

ations. At EC, we believe that addressing the challenges of sustainable

sustainable development benefit, those same investments will have a

development (SD) is critical if we are to globally transition to the low

wider sustainability footprint. EC is committed to incorporating Environ-

carbon, resource-efficient and inclusive economy envisaged in the Paris

mental, Social and Governance (ESG) factors across our whole invest-

Agreement and the UN Sustainable Development Goals (SDGs).

ment process to ensure we understand and manage that wider impact.

Sustainable technologies

lines, which set out ‘no-go’ areas into which the advised Funds will not

Our investment themes focus on the commercialisation and deployment

invest, and minimum standards based upon international best practices

of proven, sustainable technologies, in various industries including

which all Fund investments should meet. ESG is factored into our due

agriculture, clean industry, energy generation, resource and energy

diligence process on new investments and our ongoing assessment and

efficiency, waste and water. This allows us to target areas where we can

performance management of assets within the portfolio.

Our sustainability approach includes Sustainable Investment Guide-

generate a positive impact from a socio-economic sustainability perspective but also generate superior private equity returns.

One of the key tools we use within the investment process to understand, assess and report on the overall sustainability footprint of our

FAMILY OFFICE INVESTOR

21

––– ALTERNATIVE INVESTMENT –––

● ●

The United Nations Sustainable Development Goals 2015 (SDGs) IFC Development Outcome Tracking System (Agribusiness and Infrastructure)

The scope of the Earth Dividend™ The Earth Dividend™ has been developed to be applicable to any asset in any industry sector. Therefore, whilst EC focuses investment towards renewable energy, clean technology and sustainable agriculture, the methodology is designed to be equally appropriate for use for a mining asset, thermal power generator or chemicals facility.

EC aligns itself with the Brundtland Report definition of SD, “meeting the needs of the present without compromising the ability of future generations to meet their needs” – taking full account of ESG impacts, both positive and negative. The Earth Dividend™ has therefore been designed with consideration to both today’s needs and future generation’s potential needs, perspectives and priorities.

The Earth Dividend™ is used to assess all operational EC asset investments at the point of EC investment and thereafter on an annual basis, for each reporting year.

Being an operational asset-based tool, an organisation which comSuccessful investment models don’t have to be unsustainable

prises multiple assets will prepare an Earth Dividend™ submission for each asset separately. Assets under development or construction are not

investments is the Earth Dividend™. This provides an annual measure of

assessed against the Earth Dividend™ methodology until they become

an investment’s contribution to sustainable development.

operational. In these cases, we default to the Equator Principles

The Earth Dividend™ has been developed by EC's in-house sustainab-

guidelines for assessment purposes.

ility specialists following a detailed benchmarking of leading global

All significant Environmental, Health, and Safety Guidelines (EHS) and

approaches to the assessment, reporting and assurance of ESG issues

broader SD issues arising during development and construction are

and performance. Our mission is to demonstrate at scale a successful

addressed through EC’s adherence to the Equator Principles and applica-

investment model, which prioritises SD alongside financial return, in all

tion of EC’s SD Investment Guidelines.

parts of the investment cycle.

The Earth Dividend™ scorecard Objectives and standards

The Earth Dividend™ provides a measure of the level of ‘sustainable’ or

The Earth Dividend™ has been developed to meet and balance the

‘un-sustainable’ contribution which EC assets display. The Earth Divi-

following objectives:

dend™ comprises a scorecard, based upon thirty SD issues equally

●

Robust proxy measure of an asset's contribution to sustainable

weighted across five issue categories. In some cases, the Earth

development, for reporting to fund investors, management and

Dividend™ Tests (EDTs) are assessed using selected data collected in

stakeholders

accordance with G4 ‘Indicator Protocols’. Where this has not been

Provide coverage across key sustainable development issues and

appropriate, G4 ‘Indicator Protocols’ most relevant to the EDT are identi-

standards, taking account of operational, supply chain and product/

fied in the Guidance Notes, for reference and voluntary use by the asset.

●

output SD performance

●

Reflect the interests and priorities of future generations as well as the needs of today’s generation

●

Provide a practical and ‘value-adding’ platform to guide sustainable development performance improvement across assets

●

Applicable to all sectors and geographies

Development of the Earth Dividend™ The Earth Dividend™ was developed building upon the work of:

●

United Nations Environment Program Finance Initiative (UNEP FI) Principles for Responsible Investment

●

The Global Reporting Initiative, G4 Sustainability Reporting Guidelines, including Indicator Protocols and Sector Supplements

● ●

The Equator Principles IFC Performance Standards, Guidance Notes and Environment, Health & Safety (EHS) Industry Sector Guidelines

22

FAMILY OFFICE INVESTOR

Earth Capital has invested shrewdly in sustainable agribusiness

––– WEALTH MANAGEMENT –––

Investments in the renewable energies sector have delivered

PHOTOS: ISTOCK

remarkably lucrative returns

The level of ‘sustainable’ or ‘unsustainable’ contribution is assessed for the following issue categories:

●

Natural resource consumption. Water use and efficiency; energy inputs and efficiency; efficient use of raw materials; sourcing of materials from sustainable practices; land resource value.

●

Ecosystem Services. Biodiversity and natural habitat; water system; climate system & greenhouse gas emissions; soil systems.

●

‘We are already seeing higher returns and a lower cost of capital for sustainable companies’ ●

Pollution control. Atmospheric emissions; effluent discharge; waste

embracing the value of increasing detail and granularity in under-

disposal; supply chain polluting impact, product end of life impact.

●

Social & economic contribution. Employee welfare and human rights; local economic contribution; supply chain employment

standing of non-financial SD performance

● ●

standards; contribution to Sustainable Development Goals (SDGs).

●

Society and governance. Corporate governance; bribery & corrup-

Changing global priorities relating to the relative significance of Feedback and challenge received by EC from investors, investee organisations and other stakeholders

●

The definitions above are based on a detailed benchmark of approaches to the management, performance improvement and reporting of SD.

Evolving understanding and related international best practice different SD issues

●

tion; responsible marketing and market behaviour; indigenous peoples and cultural heritage.

Shifting attitudes among a full breadth of stakeholders towards

Advice and evolving perspectives received from the EC Sustainability Council, particularly as new members enter the Council

●

Internal and external audit findings and recommendations

Sustainable businesses who focus on the forward-looking impact of their

Original concept

activities are also more likely to create better market opportunities,

Earth Dividend™ is an original concept in the context of business per-

better risk management and better profit margins. We are already

formance measurement and reporting. It addresses a broad range of

seeing higher returns and a lower cost of capital for sustainable compan-

complex and interdependent issues, some requiring very detailed

ies. Earth Capital will be investing into these businesses over the next 10

technical understanding to complete even relatively simple evaluation.

years, and the multi-decade outperformance of sustainable strategies

EC fully anticipates that the Earth Dividend™ will require continuous

fits well with the long-term investment horizons of family offices.

amendment and update to reflect:

●

Practical challenges of implementation

www.earthcapital.net

FAMILY OFFICE INVESTOR

23

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

The challenge of investing in healthcare Healthcare investment is enjoying a revival, but is it the right fit for Family Offices?

WORDS BY DR DEEPAK KOTAK, GM HEALTHCARE

PHOTOS: ISTOCK

O

ver the past several years, the fundraising landscape for healthcare and life science companies has dramatically changed, with emerging new categories of investors providing funding that was historically serviced by venture capital

(VC’s). Corporate venture funds, angels and angel networks, government agencies, and foundations are all actively investing in these sectors and represent newer, non-traditional avenues for raising capital. However, the latest growing trend is the participation of family offices.

Why have Family Offices avoided healthcare previously?

Only about 10-15% of family offices consider investing in healthcare and will lean toward the later stage opportunities; very few specialise in or are dedicated to healthcare.

There is a growing trend for family offices to invest in healthcare

Lack of domain expertise and increased risk Generally, Family Offices look past pharma, biotechnology and medical

Time frames and investment size

device development and commercialisation as they are traditionally

Basic research takes a long time to deliver new treatments to patients,

perceived as high risk areas. This is not just due to their inherent volatil-

and wealthy families want to see the impact of their investments in a

ity, but also because of the high level of domain expertise needed to

shorter time frame. Typically, later stage investments are perceived as

assess and evaluate the potential of an opportunity.

lower risk with a shorter timeline and hence preferred.

Most of a family office’s wealth will be kept in equities, as opposed to

Depending on the area and stage of development, investment round

more illiquid forms, the direct investments that families go for will tend

sizes might be considered too large for many family offices unless they

to be in lower risk areas, such as real estate. The family offices that are

are MFO’s and follow on rounds are commonly required, and with the

still interested, but who lack in-house expertise to properly understand

high cost of clinical trials, can require committing a substantial amount of

the science and business case in healthcare and life science investment

capital to avoid subsequent dilution.

opportunities may instead invest in a VC-run fund to spread risk.

Lack of access to deal flow Pharmaceutical investments are

Lack of accessibility of family offices is significant barrier to greater family

often volatile but investing in a VC-

office investment in life sciences. Entrepreneurs and business owners

run fund is a way to spread risk

rarely know of family offices or have wide networks and deep connections to this investor group. Relationships and warm introductions are a major factor in getting in front of family offices.

‘Some family offices choose to specifically invest in a particular area, often a disease that has affected members of their family’

24

FAMILY OFFICE INVESTOR

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

Why is healthcare a key sector to consider?

Despite the large majority of family offices that avoid investment in the healthcare space, the healthcare and life sciences sectors are still seeing an uptick from progressive family offices for a variety of reasons:

●

Unmet need. Several family offices choose to specifically invest in a particular area of unmet need; often a disease that has affected members of their family, such as Alzheimer’s, cancer or cardiovascular disease. Their personal interest drives investment choices.

●

Legacy. Some specialist family offices are often willing to invest in riskier areas if there is potential for involvement in the creation of major disruptors in the form of novel therapies. Families take their legacy into account as well as the potential for financial gain.

●

Evergreen fund. In many cases, any profit made via an investment in life sciences is recycled back into the area of research in an evergreen model. This acts as a form of philanthropy, and also has numerous tax benefits for the family office.

●

Direct investment allows families to work directly with scientists

Control. Direct investment in life sciences provides the family with a much greater level of control than investment through a VC fund.

●

Avoiding public market risk. The trend towards direct investment is in part due to the market crashes in prior years, when many family

●

for advancing unmet medical needs.

●

Outsourcing expertise. Outside consultants who see the potential and have the expertise to perform due diligence within these

offices lost huge sums of money invested in the public market by

sectors are actively directing and inviting family offices to this space.

their registered investment advisors. Investment in illiquid assets is

There is no doubt that the healthcare sector presents exciting potential

one way of lowering this added risk factor.

opportunities for nearly all kinds of investor. However, as a large and

Passion. Direct investment in life science companies allows

diverse sector it should not be over-simplified, with careful attention paid

families to work directly with scientists who share their passion

to ensure that risk and timescale match investment objectives.

FAMILY OFFICE INVESTOR

25

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

Start-up success is a team game for investors The world of start-ups has gone through turmoil, but one investment syndicate is offering a collective route to success WORDS BY MATTHEW STAFFORD

T

he 2010s was definitely the decade of the entrepreneur.

talk to this guy (Sam) from some sort of taxi app that was launching. And

When I started working for an early stage investor in late

Sam suggested that Kash talk to me as I’d been helpful during their

2010, being an entrepreneur was still considered a poor

launch. And so the beginnings of the Matrix began to form.

career choice. Starting your own company, many thought,

was something you did if you couldn’t get a proper job.

By 2016, having built the 9others network from one small dinner in London to 1,000+ entrepreneurs in 30 cities (it’s now 3,000+ people who

But things were changing. Post-credit-crunch the top jobs in tradi-

have had meals with 9others in 48 cities around the world) Kash and I

tional sectors like banking were harder to come by, the big bonuses

met up over several coffees to discuss what the next phase of this

disappeared and people started to look for more purpose and meaning behind their work.

In 2011 I was part of a Government programme that helped 52 startups raise £23m.

I started 9others.com which is a network for entrepreneurs to help other entrepreneurs and then in 2012 Uber came to London.

network could be. I realised that this network I’d

‘If you want to go fast, go alone. If you want to go far, go together’

built could be incredibly powerful but with my

AFRICAN PROVERB

an exit path for the startups plus the ability to

Now, ten years later, it seems that everyone

ambition to do more and start investing I also had some gaps that Kash perfectly filled. We needed my network and skills but also much better rigour, commercial focus and, ultimately, help them negotiate the challenges ahead.

is starting a startup. I have a lot to be thankful for when it comes to Uber.

By mid-2016 we had decided to do this together and that this ‘matrix’

I was introduced to original CEO Ryan Graves and helped with their

(of support) surrounding the ‘dot’ in the middle (the entrepreneur) would

launch here in the UK (and didn’t pay for an Uber for about 18 months).

make for a powerful combination. So we started a startup ourselves.

But it was through an early Uber employee, Sam, who was on the

The Dot Matrix Group (DMG) was born and with one investor we

London launch team that I met Kash Aslam. Kash, who worked at Black-

backed our first five startups in 2017. Having done this we wanted to do

stone private equity, was starting to think about doing some angel

more. With 9others I’d seen the power of what a trusted network can do

investing but didn’t know where to start. A colleague of his suggested he

for entrepreneurs, so how about we build a network of investors? If all those people want to contribute, learn and invest with us, then what?

So we spent the first half of 2018 setting up the ‘plumbing’ for the syndicate. Investment syndicates are nothing new. HNWIs have been investing together, often with friends or colleagues for years. However, syndicates are typically informal, small, ad hoc and administratively burdensome. With DMG we have unique sourcing, typically they come through the 9others network where we are able to get to know founders early and observe them over many months and even years.

This allows us to focus on how they execute over time and not feel we have to react immediately when a startup is pitching for investment. Do they do what they say they will? How do they conduct themselves? Are they receptive to feedback but also determined and visionary? Can we help them and introduce them to people in our network that might be able to help or give a view? What do those people think?

Kash and I loved what we’d done with those first five investments and one investor. What could we do with 10? What about 15? And 30, 50?

More? If we could formalise this syndicate structure, add more likeminded people, make it easy for the startup and the investors then this

26

FAMILY OFFICE INVESTOR

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

PHOTOS: ISTOCK

would be a model that could scale. We believe in the power of our collective skills and networks. We can achieve far more together than we could alone. DMG syndicate members are people who want to contribute, learn and invest. We take on new members every week so this matrix becomes more powerful and better for all as more members join.

But what do we mean when we say, Contribute, Learn and Invest?

‘We believe in the power of our collective skills and networks.

What we can achieve together is far more than we could alone’

Contribute

and helps members make their investment decision based not only on

People who have experience dealing with what the best growing startups

their own views but what others can bring to the opportunity. All this is

will have to deal with in the future - those who can bring a fresh lens to

good for our grey matter - learning is a life-long habit to be enjoyed.

hiring, firing, commercial contracts and legal agreements. We observe at all board meetings of the startups we invest in and know that they will

Invest

face challenges. A strong, growing network of people who can be called

We’re all doing this for a return. As DMG founders Kash and I invest

upon to help is very helpful. This might be a quick phone call to solve an

personally in every opportunity we show the syndicate. Each syndicate

issue, it could be a day’s workshop or it could be a syndicate member

member decides for themselves if they want to invest alongside us after

joining the board as a Non-Exec Director. Are you keen to help like this?

reading the DMG memo and the discussions. Once we’ve invested we can then contribute further, learn from that, and contribute again.

Learn

Investing is a fascinating business – there's a huge opportunity to seek

Syndicate members learn from each other. We will share 5-7 investment

outsized returns through patience and the right contributions. In fact

opportunities with members per year and we discuss each one in detail

there’s never been a better time to contribute, learn and invest.

over a dedicated Slack channel. Syndicate members also get a short DMG Investment Memo on the opportunity and it’s after reading the

Get involved. To read more about Dot Matrix Group and join the syndicate

memo that discussions amongst members begin. The discussion and

see www.dotmatrixgroup.com. To speak to Matthew about it, email him on

Q&A that happens amongst members augments DMG’s thinking in DD

matthew@dotmatrixgroup.com

FAMILY OFFICE INVESTOR

27

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

101 ways to lose money in deeptech angel investing There are many vital elements to consider in deeptech investment, but also some huge opportunities to be had WORDS BY DOMINIC FALCAO, FOUNDER OF DSV

A

fter 10 years of building and backing deep-tech companies

People invest in deeptech for one or both of the following reasons:

at one of Europe's leading universities, in the City and our

first, the potential to own a monopoly asset via patent protection, a

own fund Deep Science Ventures, one thing is clear: the

world first that seems gives some breathing room free from competition

outcomes can be big and exceed tech outcomes in both

to build a uniquely capable company. Or secondly, from the perspective

scale and speed, but any clues on how to navigate this landscape are

of making a positive impact on the world beyond that which can be

largely hidden in hearsay with little depth.

achieved with off-the-shelf software alone.

We hear phrases such as ‘avoid clean-tech, terrible bust last time’,

Sadly, as enticing as the novelty is, world class, patented Intellectual

‘hardware is too hard’, ‘synthetic biology is hot right now’, ventures

Property alone adds very little advantage. If IP is the principal focus, it can

around a certain biological target are raising a lot of money recently. In

even be a disadvantage locking the company into a given approach with

reality, the term ‘cleantech’ represents a hugely diverse set of

a false sense of security and revealing your plans to the competition.

approaches, there have been some enormous hardware exits and there are more struggling synbio companies than mattress companies.

The second heuristic is ‘an experienced management team’. No doubt having people that know what they’re doing and an existing network

It’s critical to pull out the real quantifiable drivers underlying these

helps significantly, but often the world has changed and the same

heuristics to have any chance in deeptech. We’ve seen teams completely

actions this time aren’t as valuable as a first principles perspective on the

transform investor feedback just by changing the way they are framed

problem in hand. Here, we’ll be exploring how you can think about some

from “microbiome” to “synbio”: this is a sure signal that ‘pattern match-

of the challenges ahead in tackling problems that require interaction

ing’ is regularly failing to identify commercial or technical fundamentals.

with the bits, atoms and molecules from a market.

PHOTOS: ISTOCK

Market dynamics, the people and the motivations Zero risk, zero effort is key: people act on fear, not upside. A potentially sector-shifting technology rarely fits easily in the market. A new technology will inevitably fail if it introduces risk vs. existing solutions or makes someone's life harder, yet as something new and different it almost certainly will.

Some precedent examples here are: Qbotix, which raised $23m from energy giants to remove the need for expensive motors in large solar panel installations. The solar farm owners didn't think the change worth the risk and the ultimate winner was the motor company with a $330m exit. In healthtech, ReVision Optics raised $194m to develop a far better solution for vision loss but failed principally because the procedure doubled the workload for the clinicians.

This is why virtually every primary care diagnostic eventually bites the dust as well. As do a lot of ‘AI for biotech’ software, the user doesn’t want software, they want assets and results. The problem is not primary care

Almost every primary care diagnostic eventually bites the dust

28

FAMILY OFFICE INVESTOR

diagnostics: it is rather the burden that these diagnostics place on

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

clinicians. This burden on clinicians is quantifiable, as

hearsay. In biotech specifically, whilst biotech only

are the factors that more generally tend to lead to

represents 11% of VC financing it represents 54% of VC

category-specific failures.

backed IPOs and outperforms IRR in tech 27% to 22%

Another trap is where a key element needs to be

with a median exit time of 8 vs. 9 years. The problem is

unlocked before you can enter the market. This is often

that without thousands of seed-funds as in tech, most

the case in healthcare: for example, without a rebate

companies die simply because they run out of money

code you can’t charge for your service or device and

before they’ve proven the tech and market.

there is very little data to suggest how or when a change might occur.

Some sectors have active investing ecosystems with ReVision Optics developed a

very well understood dynamics, such as biotech, whilst

This is what ultimately killed Claritas genomics who

better solution for vision loss

others have very few investors due to endless failures of

had a better solution for pediatric genetic testing.

but failed because it doubled

the past such as med-tech, chemicals, materials. All are

Binary regulatory risk is unavoidable in some sectors

the workload for clinicians

served by the major investors once the company is a

but more quantifiable in some than others. Will the EU

real company rather than a technology development.

ever allow genetic modification of food? Who knows. Will the FDA allow a

Grants help here, as do proof of concept projects, but often serve to

drug with a specific risk profile through? Well there’s a lot of data on

trap companies in a loop of niche projects with less than ideal partners

previous outcomes to quantify that decision, which is why you will find a

that is near impossible to escape from. This was the reason behind the

lot more biotech investors than synbio agri investors.

demise of BetterHealth, spread too thin and misaligned with their

Deeptech often has better IRR and faster time to liquidity vs. tech, but

partners. The only way to offset this is to build products, the simplest

you have to have visibility on the funding journey. Deep tech is often

possible product to get sales, but unfortunately far too many deeptech

faster to liquidity and requires less funding than tech, in contrast to

startups are just ‘research in disguise’ (RiD?).

FAMILY OFFICE INVESTOR

29

––– ALTERNATIVE INVESTMENT –––

Drone analytics companies were blindsided by rapid expansion in the consumer drone market

Ride the underlying waves of shifting market dynamics The threats are rarely in competing technology but in the diversity of

far the best customer experience for undertaking facility analysis in a

approaches. Look at the problem space rather than the technology

very noisy space. But expansion of consumer-grade drones made buyers

space. It’s so easy to be sucked in by something that looks game chan-

realise that at the top of the market they could buy their own kit and train

ging that is often, not even consciously, hiding the real threats. These

experts to do it themselves for less, and and the lower-end people simply

won’t appear in the company’s 2x2 competitor grid. The ventures in that grid will either live or die for the same reasons, just look at the 200+ amyloid beta antibody trials that have failed so far: how many hours were spent agonising over the minute differences

‘Trends and supporting technologies shift faster than companies are built’

used off-the-shelf kit, leaving no space for Airware or any of the similar companies.

Trends and supporting technologies shift faster than companies are built. One of the hardest aspects of deep-tech investing is marrying the long time horizons of techno-

between those in pitch decks when in reality it’s not a competing techno-

logy development with often rapid shifts in the macro market. Just a year

logy that will win but a completely different approach.

ago clean-tech was a dirty word, now it’s overflowing with investors, from

An example of missing the bigger picture is that of the much heralded and very well-funded Airware, a drone analytics company. They had by

angels to those managing billions in assets, driven by global sentiment that carries real risks to later stage funds.

PHOTOS: ISTOCK

Two years ago trapped ions was the leading option for quantum computing, now it looks almost cute compared to what can be achieved with photonics, driven by completely independent materials research breakthroughs. A startup can’t keep flip flopping between technologies but it can be flexible enough to ride the underlying waves.

Hype and huge capital injections can cover a lot of mistakes. 23andme is still lauded as a genome driven drug development poster child, yet after 14 years its deals still represent a tiny proportion of the venture funding it has consumed. Likewise several of the well funded West Coast synbio companies should ring alarm bells in that they’re starting accelerators and funds to stimulate the market for their services. All you can do here is build as close to application as possible (see scaling, opposite), build for where the market will be when you are product ready, and with a clear funding route at the time. Play the hype if it arrives and gather as Photonics has become the leading option for quantum computing

30

FAMILY OFFICE INVESTOR

much money as you can to live through the troughs in between.

––– ALTERNATIVE INVESTMENT –––

There are few investors willing to step in to build factories for things that aren’t yet proven

Investing in materials such as semiconductors is rarely an easy path

Great idea, but can it be built to scale?

There’s a good reason few people invest early in

Ahead of long-term deployment, costs and risks

deeptech. Even when all market aspects covered

are just guesses. Take something as fundamentally

above are well considered, the translation between

groundbreaking as immunotherapy, which has just

discovery and application is rarely an easy path.

demonstrated a step change in cancer survival

This is a particular risk in materials (including

rates and created enormous wealth for early

semiconductors), chemicals and therapeutic pro-

investors. It was invented over 30 years ago.

duction. The entire ‘cleantech’ biofuels boom and

Making a small number of cells in the lab is one

bust was based on assumptions that the econom-

thing; making them at factory scale, or rather

ics would be cost comparable to oil at scale, when

convincing anyone to take a bet, is quite another.

in reality hundreds of millions was lost due to

Deeptech investing can be hugely rewarding.

issues like algae sticking to pipes. Nearly every

You can enable life-saving therapies, prevent the

battery responds very differently at scale, Envia

demise of the planet, launch entirely new computa-

systems quickly lost cycle life once built at scale,

Deeptech investing can be rewarding:

tional paradigms and certainly many people have

whilst Satki3’s deal with Dyson ultimately fell apart

make money, improve the world

made a lot of money. However, whilst we haven’t

as the results weren’t reproducible.

listed all 101+ traps here, hopefully it’s clear that

Meanwhile, many approaches simply can’t be manufactured in

there are major buckets of risk. Care and attention can reduce the risk to

existing facilities, and whilst it might sound realistic to build a factory for

some extent, but certainly not all risks are entirely quantifiable. If you’d

a huge multi-billion pound opportunity there are few investors willing to

like to learn more you’re very welcome to join our deep-tech investor

step in to build factories for things that aren’t yet proven.

community over at dsv.io/investorcommunity.

Deep Science Ventures (DSV) was founded in 2016 to create an optimised method for

build ventures that will redesign entire sectors.

DSV has designed, created founding teams,

still being pre-Series A (70% of their companies secure external funding of greater than £250k

launching science companies. Rather than

incorporated and funded 24 science based

after investment). Because DSV teams are

starting with university IP, DSV identifies

companies from scratch in three years, and

manually curated, they have finer control of

fundamental challenges and works with its

their funding has been leveraged more than

diversity, and so over 50% of their founding

global network of entrepreneurial scientists to

seven times, despite their oldest companies

teams are mixed gender.

FAMILY OFFICE INVESTOR

31

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

Crypto maturity creates an interesting investor option Social trading network eToro says a more established and accessible crypto market will develop in 2020 and beyond WORDS BY KATIE EVANS

I

t is clear that the crypto industry is not going away, with more and

date and with price on a fairly steady increase to $10,000, Bitcoin could

more investors looking to allocate part of their investment portfo-

range between $8,000 and $13,000 prior to the block reward halving.

lio to the nascent technology. As prices increase, central banks look

Should we see investor sentiment remain positive towards this

at developing their own crypto projects, regulators start to bring it

cryptoasset, we could see the bull market topping out at as high as

in line with other asset classes and consumers begin to understand and use real-world applications of blockchain technology.

$120,000 at the end of 2021.

Events such as the upcoming Bitcoin halving often seem like a tempt-

Amongst all of this, it is important for investors to understand what

ing opportunity to start investing in crypto. Whilst these events do have

drives price and how the industry is maturing. A key aspect of crypto-

an impact on price, they’re not the only thing investors should consider

assets is the control of supply and demand,

when wanting to get into crypto.

given they are not backed by a central govern-

Given Bitcoin hit the upper echelons of the

ment as traditional fiat currencies are – for

$19,000s in late 2017 and is currently sitting at

example the Bank of England and how it regu-

$10,000 at the time of writing, there is still room

lates circulation of Sterling.

for potential growth – and not just bitcoin.

Ethereum is also far from its highest price of

Bitcoin halving

$1,300, with the coin currently sitting at $259.

As a decentralised entity, cryptoassets must self-regulate to control circulation and they do

Price movements

this by using block reward halvings. This is

Should we see the prices of various crypto-

where a miner’s reward for mining (creating)

assets continue to creep higher, this could

Bitcoin will be halved. Given the enormous processing power needed to mine Bitcoin and the reduced block reward for the same amount of effort, miners will see a drop in revenue if prices remain at current levels. Therefore, it is

‘There are roughly 1800 Bitcoins mined per day’

key for miners that there is a price increase to

further escalate as other investors pile in from fear of missing out.

Extensive media coverage, as we have seen recently, of cryptoassets also contributes to price movements and many investors can take advantage of that. The debate as to whether

compensate for the reduction in the block reward and to cover

crypto, or in particular bitcoin, is being increasingly viewed as a safe

their overheads. If there is not, bitcoin mining operations could go

haven asset has appeared in mainstream media.

out of business or reallocate their processing power to other more profitable cryptoassets.

In times of geopolitical instability, on the eToro platform we have seen investors move into bitcoin in the same way that they would gold.

For example, following the assassination of the Iranian general Qasem

Bull market runs

Suleimani at the beginning of 2020, there was a 46% increase in the

Bitcoin will undertake a block reward halving this year. There are roughly

amount of opened bitcoin positions, compared to the average in the

1800 Bitcoins mined per day. Following this year’s halving, expected in

previous three months globally.

May, this will drop to 900. Historically, the bitcoin block reward halving

Similarly, we are seeing some countries turn to crypto when their local

has preceded extensive bull runs in the asset, with the price rising

currency is plagued with hyperinflation because they present a decent-

exponentially. Following the halvings of November 2012 and July 2016,

ralised transfer of value, devoid of central bank or government interfer-

the price per coin hit $1,150 and then soared to over $20,000 from $2.01

ence. People living in Venezuela, which saw the local bolivar lose 99% of

and $164.01 respectively.

its value against the US dollar (USD) in 2019, are turning to cryptoassets

As we approach the halving, we expect the bitcoin price to consolidate and trade within a certain price range. Looking at performance year-to-

32

FAMILY OFFICE INVESTOR

such as bitcoin and dash as an alternative. In fact, dash is now so popular in Venezuela that Burger King is trialling accepting payment in the coin.

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

However, the price of cryptoassets is still volatile, meaning they

A group of central banks was set up this year to assess the merits of

haven’t reached the point where the majority of people feel comfortable

CBDCs and indicates that regulators are finally recognising the potential

using them as a day-to-day means of paying for goods or services. They

of cryptoassets. It would be important, and even essential, for this group

are also expensive. One bitcoin is worth over 10,000 USD and its equival-

of banks to reach out to the existing cryptoasset sector, in order to

ent cent - the Satoshi - is not valuable enough yet to use sensibly. At the

understand their experience and expertise on the benefits and the

time of writing, 1 million Satoshis make up a bitcoin.

challenges of digital coins. After all, bitcoin has been around for over a decade so there’s no point in reinventing the wheel.

Regulation a regular bugbear

It’s also interesting to note that the US isn’t represented, and neither is

One crucial focus for the crypto industry, is regulation. In 2019, high-pro-

The People's Bank of China. However, the latter has been looking into its

file projects such as Facebook Libra helped to bring the topic of crypto-

own state-issued crypto since 2014.

currency to the forefront of regulators and policy makers globally – some of whom are actively working to embrace crypto such as the Chinese

Product accessibility

Government while others are still adopting a wait-and-see approach.

Currently there are no crypto structured products for investors to use.

eToro has always been of the view that we should be welcoming of

Therefore, the only way investors can get regulated access to crypto is via

incoming regulation as it helps to protect consumers. Most recently, the

a regulated investment platform like eToro or a crypto exchange such as

European Union introduced its fifth anti-money laundering directive

eToroX. Clients then need to decide if they want to buy the real underly-

(5MLD), bringing cryptoassets under the same anti-money laundering

ing asset or get exposure to the market via a derivative product.

policies as other asset classes.

So far this year on eToro, 90% of crypto investments are invested in

Until recently, central banks have been very cautious of cryptoassets.

the real underlying asset. Investors can also use the platform’s crypto

However, an increasing number of them have now launched projects to

portfolio of 14 cryptoassets, diversifying risk across the asset class. More

develop their own Central Bank Digital Currencies (CBDC).

experienced traders may prefer to trade on a crypto exchange.

FAMILY OFFICE INVESTOR

33

––– ALTERNATIVE INVESTMENT –––

PHOTO: SHUTTERSTOCK

“Mining is the process of creating cryptocurrency coins such as Bitcoin.

Software is used to solve mathematical challenges, with the "solver" rewarded with new fractions of the cryptocurrency” Cyptocurrency mining is painstaking, costly and only sporadically rewarding - and those rewards are set to be lowered substantially as our main feature confirms.

Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens, the value of which can increase massively as recent performance indicators demonstrate.

Taking the specific case of Bitcoin, the reward that miners receive is an incentive which motivates people to assist in the primary purpose of mining: to support, legitimise and monitor the Bitcoin network and its blockchain.

It is exactly because these responsibilities are spread among many users all over the world that Bitcoin is said to be a "decentralised" cryptocurrency, or one that does not rely on a central bank or government to oversee its regulation.

Given past values, there could still be ample potential for growth in both Bitcoin and Ethereum

The acronyms of crypto fundraising ICOs, IEOs and STOs

going straight to investors’ wallets, as is the case with an ICO, IEOs distribute tokens through an exchange, providing people with a market

Initial coin offerings (ICO) were introduced as a fundraising mechanism

in which to trade. We would expect regulators worldwide to implement

to support new cryptoassets, applications or projects. In theory, ICOs are

strict guidelines for IEOs, after the industry’s experience with ICOs.

a great way for getting money into new projects but their model also

Firms may choose to use the conventional IPO route to raise money

made it easy to get money out, leading people to use them in the wrong

as much of the infrastructure is already in place. Traditional investors will

way. It is estimated that at least half of ICOs during the 2017 bubble,

feel more comfortable with this option, but for a lot of smaller projects

resulted in failure or turned out to be fraudulent and investors are now

and start-ups an IPO would be too costly.

very wary of any new ICOs. Nevertheless, there are alternatives for crypto firms to raise cash - IEOs, IPOs or STOs. The initial exchange offering (IEO) model goes some way to overcom-

PHOTO: ISTOCK

ing the aversion to ICOs from investors. Instead of the offered tokens

Security token offerings (STOs) are classified as securities and therefore already come under current regulatory regimes. However, this is a fairly illiquid market and the infrastructure to buy and sell tokens postfloat needs to be built to stimulate liquidity.

The future Bitcoin is more than 11 years old and is unarguably becoming a valued asset for investors, as shown by the recent flight to it as a possible safe haven. The introduction of regulation will help boost consumer confidence, adoption by institutional investors and talk of central banks creating their own digital coins will all contribute to the industry maturing.

We think that when we start seeing Bitcoin, for example, as a payment option, with retailers pricing their products in Satoshis, the cent to Bitcoin’s dollar, this is when we know that cryptoassets have moved into the mainstream.

What the crypto industry needs to do now is continue to educate investors and consumers on the different types of cryptoassets. When investors pick stocks for example, they will research the company and understand its business model. Similarly, people must understand the use cases and applications of blockchain technology so that they can make informed decisions about the cryptoasset they invest in.

34

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

FAMILY OFFICE INVESTOR

35

Stronger together

PHOTO: PER LA MAR VIVA

––– WEALTH ––– FEATURES MANAGEMENT ––– –––

Nine separate foundations that fund local conservation projects in different parts of the world are now joined together by a new global network to help raise awareness of their work

I

t all started in Ibiza. Eleven years ago, the financier and environmentalist Ben Goldsmith teamed up with his friends Serena Cook and Will Aitken to create The Ibiza Preservation Foundation (IPF), which funds conservation and sustainability projects on the island.

IPF has had a number of significant conservation wins over the years

and now focuses on four clear programmes: protecting posidonia seagrass beds (a crucial but vulnerable marine habitat) from pollution and yacht anchors; reducing single-use plastics in Ibiza and Formentera; promoting Ibiza’s local produce; and funding a much-needed sustainability observatory, which studies the impact of the extreme population fluctuation between the winter months and the summer tourist season.

Last year, IPF raised more than €400,000 from individual donors, who mostly contributed €5,000 to €10,000 each, and from corporate partners such as hotels and restaurants that added €1 for IPF on top of each bill.

Recognising the success of IPF’s model, in 2015 various groups of friends began to replicate it elsewhere. In the volcanic Aeolian Islands, a UNESCO World Heritage Site near Sicily, the Aeolian Islands Preservation Fund (AIPF) is working to support the creation of what could be Italy’s

Sea turtles are now safer in St Vincent and the Grenadines, thanks to the SVGEF Currently nine separate funds form part of the network

38

FAMILY OFFICE INVESTOR

Positive action in Menorca: 143 beach clean-ups organised in 2019 alone

––– WEALTH ––– FEATURES MANAGEMENT ––– –––

‘The model links people who are passionate about a place with those working hardest to protect it’

FAMILY OFFICE INVESTOR

39

––– FEATURES –––

PHOTO: YASAS RATNAYAKE

‘It made a lot of sense to formally unite all of these separate funds so the Conservation Collective was formed’ largest and most effective marine protected area.

The St Vincent and the Grenadines Environment Fund (SVGEF), has been central in lobbying the government to place a total ban on the killing of sea turtles. It is now working with former whaling communities to encourage a transition away from killing wales for food, by supporting alternative livelihoods through the development of a sustainable whale watching industry.

In 2017, Jade Brudenell joined Goldsmith to coordin-

Some of The Conservation Collective’s member funds are working to encourage sustainable fishing in small, locally owned boats with self-regulating codes of conduct

ate the local funds, to provide strategic and operational advice, and to proactively replicate this straightforward but extremely

grant recommendations and contribute to fundraising, and a technical

effective model in new locations around the world. There are now nine

advisory board who help to source and assess grant proposals.

core funds in Ibiza, Mallorca, Menorca, the Aeolian Islands, Greece’s

As a whole, The Conservation Collective raised more than €1,000,000

Cyclades and Ionian Islands, St Vincent and the Grenadines, Barbados

in 2019 and is aiming for a 30% increase in 2020. The Collective is also

and Sri Lanka. It made a lot of sense to formally unite all of these separ-

now a UK-registered charity, which will enable it to seek additional

ate funds with a single brand, so The Conservation Collective was

funding to supplement the support it currently gives its members.

launched last year. It also works with associated funds in Pakistan and

Corporate partners are a growing revenue stream, with contributions

the Leuser ecosystem in Indonesia. The extensive pipeline includes the

from a wide range of businesses including restaurants like Franco Manca

Highlands and Islands of Scotland, Tuscany, the Cayman Islands and

(a gourmet pizza chain with heritage in the Aeolian Islands) and fashion

Devon, to name but a few.

brands such as LoveBrand and Swarovski, whose collections are inspired

What the funds have in common is a shared vision to develop their

by some of the species our funds are working to protect.

area into a model for sustainable management. They are focussed on

This year, the environmental agenda and tackling climate change are

involving, empowering and strengthening local communities, and

high on everyone’s priority list and The Conservation Collective’s model is

becoming proactive agents of positive, long-lasting environmental

in high demand, thanks to its focus on linking those who care passion-

change. The funds are independent, locally based, not for profit, and

ately about a place with those working hardest to protect it. The pipeline

provide accessible funding.

is growing fast, as is the opportunity and ambition to involve a more

Each fund has one full-time, locally based executive director whose

diverse range of funders from private individuals to corporations, trusts,

job is administering grants and fundraising. There’s also a steering

foundations and in some cases bilateral or multilateral funding agencies.

committee made up of the most active donors, who review and decide

Going forward, The Conservation Collective’s main objectives are to provide additional funding to the projects that are set to deliver the biggest conservation wins; to seed new funds; and to create a central team that can boost its fundraising capacity, scale up efforts to leverage co-funding, and provide more support for local executive directors.

‘We have great ambition to roll this model out far and wide in the future,’ Goldsmith says. ‘Everywhere you look there are brilliant, passionate people working to create positive environmental change. Often they work to advance their projects and campaigns with little or no budget.’

‘The aim of the local environmental re-granting funds of the Conservation Collective is to make it easy for individuals and local businesses to provide financial support for the most effective organisations working for the protection and restoration of the natural environment of the place that they love,’ Goldsmith explains. ‘Small amounts of funding, strategically directed, can supercharge this work – as we are seeing in the places where we have created these funds. If you make it possible for people to help restore nature in their own backyard, they’re almost

The Aeolian Islands Preservation Trust has seen success on land and sea

40

FAMILY OFFICE INVESTOR

always likely to be receptive.’

––– WEALTH MANAGEMENT –––

FAMILY OFFICE INVESTOR

41

––– WEALTH MANAGEMENT –––

42

FAMILY OFFICE INVESTOR

––– FEATURES –––

Conservation Collective success stories With support from individuals, businesses and other charities, Conservation Collective funds are already making a difference, supporting grassroots initiatives whilst focusing on goals such as eradicating singleuse plastics, establishing and enforcing marine protected areas and protecting native flora and fauna

PHOTO: FRANCESCO CICCIOSESSO INSET: CARMELO ISGRÒ

Aeolian Islands Preservation Fund One of the fund’s big successes has been developing a strong, smallscale, sustainable fishery. Three ice machines have been installed in Salina and Stromboli, enabling local fishermen to keep their daily catch fresher for longer. The fishermen are self-regulating their fishing via a voluntary code of conduct.

More than ten tons of ‘ghost nets’ – lost or

The waters around the Aeolian Islands could be Italy’s largest, most effective marine reserve abandoned fishing gear, a major type of marine

km of polypropylene lines were confiscated

pollution – were recovered over two years. They

and removed from the sea in two years.

were then reclaimed and transformed into

For the first time ever, in 2019 Stromboli got

Econyl yarn, an infinitely recyclable nylon used

its own olive oil mill, and in its first year of

Olive oil is being produced for the first time

in the fashion industry. 6km of illegal driftnet,

operation three tons of olives were harvested

on Stromboli in the Aeolian Islands

197 FADs (Fishing Aggregating Devices), and 280

and processed on the island.

PHOTO: MANU SAN FELIX

Ibiza Preservation Foundation IPF created an alliance that successfully prevented oil drilling projects in the waters around Ibiza and Formentera and is now campaigning for a change in law to prevent all oil and gas exploration in the Med. It also encouraged more than 100 businesses to reduce single-use plastics through a 'Plastic Free’ movement, whose core goal is to eliminate their use on both islands by 2023.

To stimulate Ibiza’s almond market, another IPF initiative supported the planting of more than 1500 native almond trees and provided an almond cracking machine for the local farming cooperative.

An IPF campaign with local partners convinced the Balearic Government to create two new marine reserves in 2018 in the waters around Ibiza.

IPF has also developed an app that helps yachts to avoid anchoring on posidonia seagrass. Recent official data showed that the proportion of boats anchoring in the seagrass meadows around Ibiza fell from 25% to 7.4% in 2019.

Posidonia seagrass is a crucial ‘nursery’ habitat for many fish species

FAMILY OFFICE INVESTOR

43

––– FEATURES –––

PHOTO: PANOS DENDRINOS

Conservation Collective success stories Cyclades Preservation Fund CPF is helping to promote the ‘Fish Smarter’ initiative. This is an educational programme highlighting the importance of sustainable fishing and fishing tourism, which has engaged with 92 professional fishermen in 10 Greek islands.

Another important project that the Cyclades Preservation Fund is supporting is Clean Blue Paros, a plastic-free initiative which is engaging local businesses (such as tavernas, hotels, cafes, restaurants and bars) and encouraging them to commit to plastic reduction targets, in return for giving them a Clean Blue certification. The targets are based on the businesses eliminating the use of plastic straws; and phasing out other single-use plastic items such as coffee cups, bags and bottled water.

Sustainable fishing in the Cyclades will

CPF has also established the first Seabins (automated

benefit the Mediterranean Monk Seal

rubbish collectors) in the harbours of Syros and Paros, collecting hundreds of thousands of pieces of floating litter.

Menorca Preservation Fund

A big win: SVGEF persuaded the government to

MEPF supported a pilot scheme

ban the killing of sea turtles and parrot fish.

in which 12 local fishmongers

Another initiative launched the first two

handed out more than 80,000

whale watching boats in Barraoullie and

biodegradable bags and single-

arranged training and exchange programmes

use plastic alternatives. As a

for the guides, one of whom is a former whaler.

result, the Ciutadella fish

The organisation also funded research and

market made biodegradable

helped locals to protect the endangered Union

materials mandatory. Mahon,

Island gecko, which now has CITES protection.

the island’s capital, is now

PHOTO: JENNY DALTRY

PHOTO: JUANJO PONS

St Vincent and the Grenadines Environment Fund

considering doing the same in

Menorca’s natural environment is a UNESCO Biosphere

its fish market.

Reserve and its aquifers are being replenished

After the local government created a new Marine Protected Area around

organised 143 beach clean-ups. More than 5.5

Isla del Aire, with 7,192km² of habitat and 634

tonnes of plastic waste was collected.

species of marine life, MEPF played a key role in

There’s now a brighter future for endangered wildlife in St Vincent and The Grenadines

water management, improving traditional

and harmful anchoring on posidonia meadows.

rainwater collection systems to protect fresh

They stopped 166 boats from fishing in the area

water stocks in Menorca’s aquifers. This project

and explained the new rules to 238 people.

has already saved more than 1,200 tonnes of

In 2019, MEPF partner Beachclean Menorca

Funds founded last year get their first grants

water a year.

The Lanka Environment Fund is supporting work to identify and

The Ionian Environment Foundation is supporting the Save Erimitis

establish forest corridors in the central highlands of Sri Lanka,

campaign, which aims to protect one of the last two pristine areas on

using the leopard as an umbrella species to protect entire habitats

the east coast of Corfu from illegal development. Erimitis comprises 500

and ecosystems.

km² of coastal habitat including two formally protected lakes, a

44

MEPF is also working with local farmers on

surveillance, protecting it from illegal fishing

The Barbados Environmental Conservation Trust is supporting a

landscape of immense natural beauty and coastal waters – a whole

coral regeneration project, using an innovative ‘bio rock’ technology

ecosystem of unique richness in Mediterranean biodiversity.

that has shown great potential for accelerating coral regrowth.

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

FAMILY OFFICE INVESTOR

45

––– WEALTH ––– FEATURES MANAGEMENT ––– –––

Striving for Salvation The primary mission of the Salvation Foundation is to aid in the prevention, rescue and rehabilitation of sex trafficking victims and survivors. We speak to founder Kara Garland about this terrible global issue and what drives her personally

Kara, you are the Founder of the Salvation Foundation. Has Not-for-

with the public, orchestrating seminars and workshops for Ryan, the

Profit always been your career?

CEO, to speak about what Paradyme has to offer. Since inception, the

It hasn’t always been at the forefront of my career but has actually been

company has grown exponentially.

a lifelong dream of mine, since childhood, helping others and trying to

Through my community involvement, I’ve connected with people

make a difference has always been a passion and a way of life, but I had

who have supported my plan and passion, enabling me to put into

to focus on my actual career, first and foremost.

place a foundation for the prevention of human trafficking, with a keen

After a decade in banking, finance, public relations and business

focus on sex trafficking.

development, I became the chief operating officer for Paradyme, a multifamily office focused on real estate investments. Here I run the back-end

We spoke earlier about the foundation, and watching you speak

operations, handling such departments as marketing, human resources,

felt like this is very personal for you…

business development, investor relations. I took on the role of liaison

It is, very much so. I was a victim of sexual molestation by a friend’s father as a child, drugged and raped as a teen by law enforcement officers, and molested by a doctor as a young adult. It was terrifying. My

‘Worldwide, there are an estimated 24.9 million victims of sex trafficking, with only a handful of countries unaffected’

46

FAMILY OFFICE INVESTOR

abusers isolated me, planted lies, kept me emotionally off balance, and prevented me seeking help and a way out, with coercion.

I didn’t have anyone to rescue me, I was in a state of fear; I don’t want that to happen to anyone else.

The worst part was my abusers were people that were close to me, people of authority that I was supposed to trust. I refused to let these

––– –––ALTERNATIVE WEALTH MANAGEMENT INVESTMENT––– –––

occurrences hold me back in life and turned them into the fuel that has driven me to protect others, to help them learn the warning signs and feel empowered enough to seek help and to heal the trauma.

have a passion for helping others.

In business it means protecting our investors, their future, their family, and their legacy. Because of our lifelong relationships with our investors, their commitment to the foundation in terms of their time and

What are the Salvation Foundation’s main areas of focus?

donations, has been instrumental in its development.

There are so many issues to deal with: prevention through awareness,

Every team member who works with me at Paradyme Investments

helping those who become victims by rescuing them and then offering

has donated some of their time to the Salvation Foundation, helping

them help for rehabilitation, counseling, education, placement, whatever

to organise events, and raising awareness about the issue of sex

is necessary to bring the survivor back into the community as a healthy,

trafficking within their respective circles of influence. Ultimately, this

vibrant, healed person.

is what it’s all about, educating the public to build an ever-growing global network.

How is the foundation funded?

The startup funding for the foundation came from a portion of profits which Paradyme dedicates to philanthropy. Since then we have launched our website (SalvationFoundation.com) to educate and accept donations

Sex trafficking in numbers

to fund further expansion in efforts to eradicate sex trafficking. I take on

The International Labor Organization, an arm of the United

speaking engagements, host events, write articles, and continue to be an

Nations, estimated that the profits associated with sexual

advocate for children who are victims, the majority of whom are fostered

exploitation and trafficking reach $150 billion while only $124

or homeless, or come from unstable family environments.

million is spent every year fighting human trafficking. This makes human trafficking the third largest criminal enterprise in the

Paradyme Investments is a family office in more ways than one.

world, with only the drug trade and counterfeiting ranking above

How has that translated for the foundation?

it. Worldwide, there are an estimated 24.9 million victims of sex

Paradyme is absolutely a family environment, we value each person,

trafficking, with only a handful of countries unaffected.

both internal and external as family. We love doing what we do, and we

FAMILY OFFICE INVESTOR

47

––– FEATURES –––

The sound investments of the Fine Watch Club Affordable limited series and exclusive events on the schedule TEXT: BRICE LECHEVALIER

T

he mission of the Fine Watch Club is to open wide the doors of the watch industry for its members, to deliver an experience and provide access to rarity, not only through events but also

through watches that cannot be found elsewhere.

Fine Watch Club members enjoy a very special backstage experience at events such as Baselworld, Only Watch, the

Grand Prix d’Horlogerie de Genève and the Watch Photo Awards. We arrange VIP tours inside manufacturers such as Bvlgari, Jaeger-LeCoultre, TAG Heuer, Vacheron Constantin and Zenith, as well as visits to the Patek Philippe and Frédérique Constant museums.

Bvlgari Octo Finissimo Automatic

Bvlgari Octo Finissimo

Titanium, Limited series Fine Watch Club

Chronograph GMT Automatic

In 2020, rumour has it that the brand-new Audemars Piguet and Omega museums may well be on the schedule too, with some confidential behind-closed-doors events in the automobile, horological and yachting sectors.

Investing for pleasure The Fine Watch Club’s work with limited series and recommended models is driven by many things, from the quality of the aesthetic to technical content, but there is also a good deal of seasoned and highly considered reasoning.

The first three limited series offered were initiated by the international watch owners’ club and relate to the very best brands and models whose value has been clearly recognised by collectors and professionals in the sector.

48

Maurice Lacroix Aikon

Maurice Lacroix Aikon Automatic

Mercury, Only Watch 2019

Chronograph, Fine Watch Club

FAMILY OFFICE INVESTOR

The first buyers of Fine Watch Club watches have thus been able to rejoice in their investment.

––– FEATURES –––

The GPHG label Within this context, it is well worth recalling that Bvlgari's Octo Finissimo Automtaic Titanium won the Men's Watch Prize at the Grand Prix d’Horlogerie de Genève in 2017, and its chronograph version is now also a prize-winner in the Chronograph category of the 2019 edition.

‘The mission of the Fine Watch Club is to open wide the doors of the watch industry for its members’

An incredible fifth world record for thinness set by the Octo Finissimo collection further reinforces the desirability of this iconic line, which is highly prized by the world’s top collectors, who are well aware of Bvlgari's expertise and won over by its avant-garde aesthetic. A 12-piece limited edition of this successful model is thus a reliable bet.

FAMILY OFFICE INVESTOR

49

––– FEATURES –––

Zenith event at Calvin in Geneva

Auction evidence The Fine Watch Club was behind Zenith’s decision to produce a special edition for its members, with the only steel case in the El Primero 50th anniversary collection equipped with the new A386 calibre, normally housed in gold models only, as well as to endow it with an exclusive dial for a 24-piece limited edition – all at the very affordable price of CHF8,900.

One month after this launch, collectors demonstrated their enthusiasm for the Zenith El Primero Only Watch, which was auctioned

by Christie's at more than three times its estimate (CHF75,000); as well as for the oneof-a-kind platinum model designed with Phillips in association with Bacs & Russo, which reached a record CHF250,000. How could you go wrong with the one offered by the Fine Watch Club?

A fine opportunity During the prestigious Only Watch biennial auction

(see

the

complete

analysis

on

worldtempus.com), a Maurice Lacroix Aikon went under the hammer at more than three times its official estimate, selling for for CHF17,000, with a CHF3300 price tag.

The Aikon automatic chronograph created in a 24-piece limited edition by Maurice Lacroix for the Fine Watch Club is, therefore, a real opportunity, especially since it is offered with a steel bracelet plus an easily interchangeable technical synthetic strap, along with an exclusive dial and engraved case back,.

This is the first time Maurice Lacroix has ever produced such a limited special series,

50

Zenith El Primero Revival

Zenith El Primero

which backs up this exclusive Swiss club’s

A386, Fine Watch Club

A386 Only Watch

#getwhatyoucant hashtag.

FAMILY OFFICE INVESTOR

––– COLLECTORS –––

FAMILY OFFICE INVESTOR

51

––– REAL ESTATE –––

Castle Residences, the only apartments in the sea Offering a unique island lifestyle within Limassol superyacht marina, the Castle Residences are now ready for viewing

W

ith what promises to be Cyprus’ most exclusive resid-

Located within a stone’s throw from the marina’s superyachts and

ential development, Castle Residences is a small cluster

just a few steps or a swim away from its golden sandy beach, the luxury

of homes offering breathtaking 360° views across the

properties are the only examples in Cyprus to actually be built in the sea,

Mediterranean Sea and the picturesque coastal city of

and the closest you can come to a yachting lifestyle without setting sail.

Limassol. And with the first show apartment now ready, the full wonder of this development can be experienced first-hand.

52

Nikiforos Pampakas, general manager at Limassol Marina, comments: “Accessible by a private bridge, these exclusive and spacious apartments

Surrounded by water, Castle Residences is the marina’s final phase

are set against a stunning backdrop of azure waters and clear blue skies,

of development, offering a choice of stylishly designed two, three, four-

embodying an exclusive marine lifestyle, mere moments away from the

bedroom apartments and duplexes with covered terraces, uncovered

city centre. We are pleased to be in a position to now offer tours around

verandas or sundecks.

the first show apartment and we welcome interested buyers to come

FAMILY OFFICE INVESTOR

The luxury properties are the closest you can come to a yachting lifestyle without setting sail

‘Accessible by a private bridge, these exclusive apartments are set against a stunning backdrop of azure waters and clear blue skies’

FAMILY OFFICE INVESTOR

53

––– REAL ESTATE –––

‘Castle Residences offers a choice of stylishly designed two, three, four-bedroom apartments and duplexes with covered terraces, uncovered verandas or sundecks’ down and take a look at the great views for themselves.”

Residents will benefit from a range of first-class facilities including communal swimming pools, private underground parking, storage space, round-the-clock security, concierge and rental services, property management and priority berthing adjacent to the residences. They will also have access to the marina’s exceptional waterfront restaurants, high-end boutiques, shops, cultural centre, spa and fitness club.

Castle Residences is the crown jewel of Limassol Marina, which recently won the ‘5 Gold Anchor Platinum Award’, the highest distinction for exceptional marinas across the globe, providing outstanding customer services and facilities. It became the fifth marina in the world to have received such an esteemed accolade. The award comes only a year after the successful destination also became a Blue Flag marina.

Castle Residences is scheduled for completion in September 2020 with prices starting from €2 million for a two bedroom apartment.

For more information on Castle Residences or to book a private tour of the first show apartment, call +357 25 020 020 or visit www.limassolmarina.com.

54

FAMILY OFFICE INVESTOR

––– COLLECTORS –––

Cairoli Monaco Luxury Services 30, Boulevard d’Italie - 98000 MONACO FAMILY OFFICE INVESTOR www.cmls.mc - info@cmls.mc

55

––– WEALTH ––– REAL MANAGEMENT ESTATE ––– –––

Swissmade meets Monaco BIT MONACO 2020, hosted in June by the Monaco Yacht Club, has become an important forum for the Swiss-Italian real estate sector

with many of the most important regional

A

alongside the organisers.

cities taking part in the event and the Canton Ticino Bureau of Economics working

n exclusive event, introducing the

The Event

dynamic entrepreneurial spirit of

The Swiss-Italian sector is also enjoying a

The Forum

Italian-speaking Switzerland, on

luxury boom, and under the aegis of

As part of the event, the “Swiss and Monaco

June 10th 2020 the Yacht Club de

Swissmade, BIT has been able to grow this

opportunity forum 2020” will be an

Monaco (YCM) will play host to BIT Monaco

element of the event, with high exhibitor

opportunity to compare, inform and share

2020: where Swissmade speaks Italian.

demand. Bringing together a network of

ideas, new trends, technologies and

potential partners, buyers, market investors

architectural innovations through conferences

The BIT story

and industry professionals that make up the

and round table discussions, with a concerted

Borsa Immobiliare Ticino (BIT) started out as a

BIT experience, the event also enjoys a true

emphasis on environmental sustainability.

niche event, focused on those real estate

global reach. And with many attendees having

promoters who foresaw a market slowdown

made multiple visits to BIT events, there is an

the Yacht Club de Monaco, BIT will create a

in 2014. Over the years BIT has become the

equally strong relationship with visitors.

platform for its exhibitors to engage with a

reference event for all professionals in the

The event’s formula has been lauded as an

Set in the uniquely elegant surroundings of

highly sophisticated audience that has a clear,

real estate sector who need a forum where

excellent example of the promotion and

proven interest in the Swiss-Italian market – a

they can network and increase visibility in a

development of the real estate sector. It is

land of business opportunities, technological

region with a constantly growing economy.

also recognised by several Swiss authorities,

development and great tourist resources.

For any info please contact CMLS – Mr. Raffaello Cairoli – rcairoli@cmls.mc

56

FAMILY OFFICE INVESTOR

––– WEALTH ––– REAL MANAGEMENT ESTATE ––– –––

‘Set in the uniquely elegant Yacht Club de Monaco, BIT will create a platform for its exhibitors to engage with a highly sophisticated audience’

FAMILY OFFICE INVESTOR

57

––– INTERVIEW –––

Money Talks We speak to James Palmer, founder and CEO of Stratal, about the progress and future of alternative investments

“What are the challenges facing the alternative investment market in 2020?”

of innovation, the same strategies can be applied to others.

There are obvious pitfalls to this approach and any new

The wider investment market is not blessed with a great

investment avenue needs to be incredibly well researched.

deal of certainty. It’s probably less important to dwell on the

Also, we would welcome widening of investment assurance

technical, political and environmental factors causing this,

or tax efficient schemes (such as EIS and SEIS) to help

and focus on the immediate lack of confidence which is

investors explore other sectors with greater confidence.

slowing the decision making process in investing.

We were hoping for a little more stability coming into

58

What were the Alternative success stories of 2019?

2020, and still feel that sources of capital will flow as the

The market has been very reassuring, with new opportunit-

year progresses, which will be critical for early stage busi-

ies driven by exciting start-ups and technology-driven

nesses who have been hardest hit by the lack of funding

businesses. It is hard to point to one particular area of

activity. In the meantime the competition for funding is

growth or activity. It may be a little non-committal, but the

fierce and concentrated around a few mega-rounds, de-

political answer would be to point to the continuing evolu-

risked to some extent but perhaps offering less value to

tion and growth across alternative sectors, which in itself is

investors outside huge institutions.

creating improved returns.

I would say that the biggest challenge is in keeping

If I had to highlight one sector, it has been especially

investors interested in the early stage businesses, and their

pleasing to see the market adapting to pressure to become

opportunities accessible, in order to realise their massive

more sustainable, a theme which will only strengthen over

untapped potential.

the coming years.

Is diversity the key to a strong portfolio, or can

Where are you hoping to see activity in 2020?

investors still target specific sectors?

If we see the continuing divergence and choice continuing,

The investors we talk to on a regular basis are moving

that would be very good news both for businesses and

towards a more generalist approach rather than being

investors. In a changing world, we need new and future-rel-

focused on a single sector. Often this is driven by the

evant investment opportunities. It is vital that investors are

transformation, or indeed usurping, of traditional indus-

given the right information too, making the decision-mak-

tries by technology. And once you are confident in one area

ing proceeds as clear as possible.

FAMILY OFFICE INVESTOR

––– WEALTH MANAGEMENT –––

FAMILY OFFICE INVESTOR

59

INVESTMENTS

P rivate Capital

Wealth Management Monaco

Dubai

ParadymeInvestments.com

London

United States

+1 951 326 8500