SYZ Group launches private markets investment company – SYZ Capital

Monday, 12/10/2018

SYZ Group, the family-owned Swiss financial group, has launched SYZ Capital, a private market investment and advisory specialist. As the fourth business arm of the group, it focuses on selecting attractive investment opportunities across private markets, offering tailor-made solutions through thematic funds and co-investment vehicles, as well as advisory services around financing solutions and capital structuring.

Monday, 12/10/2018 - 08:58

Unlocking private market opportunities

SYZ Capital is a private markets investment and advisory specialist founded by entrepreneurs for entrepreneurs. It focuses on investment opportunities in segments of private markets overlooked by traditional market participants because of size, complexity or varying investment horizons.

Based in Zurich, Switzerland, and co-managed by Marc Syz and Olivier Maurice, the company delivers a partnership model which aims to attract the next generation of private market specialists. This approach is supported by a large advisory network of private equity specialists, debt and real estate practitioners, as well as recognised industry experts.

Marc Syz, co-manager of SYZ Capital explains:

“Finding the best trends requires specific skills. SYZ Capital aims to offer unique access to select niche opportunities across private markets and direct investments. It strives to ensure alignment of all parties’ interests by being actively involved in every transaction.”

The offering is underpinned by two pillars. Firstly, SYZ Capital will offer a diversified, multi-manager fund, which will use a proprietary asset allocation model to assess opportunities on an absolute and relative value basis across markets, while being cognisant of market cycles. Its unconstrained approach strives to find the best risk-reward opportunities throughout the capital structure. SYZ Capital will also offer bespoke mandates to investors seeking tailored portfolios across private market sub-segments.

Secondly, a dedicated team will specifically focus on growth investment opportunities, such as buy-and-build strategies, where sector leaders can be created by consolidating a fragmented market. It will team up with established and experienced family businesses – embedded in industries and possessing deep operational knowledge – to maximise value creation. With execution expertise in Europe and Asia, SYZ Capital offers deal-by-deal direct investment opportunities to family offices and investors.

Too big to ignore

While private markets represent an important part of the world economy, they are difficult for most investors to access. Out of the USD 80 trillion investable assets, private markets represent approximately USD 5.1 trillion, including private equity, private debt and real assets.

Financial literature and empirical evidence demonstrate private markets can deliver returns above those of traditional asset classes. This is encouraging investors to increasingly consider alternative investments as part of a well-diversified portfolio*. Now more than ever, as companies stay private for longer and investors look to generate returns in a low rate and volatile environment, investors may benefit from including private market investments in a broader portfolio of assets.

SYZ Capital democratises private equity investments

While investors have had access to hedge fund strategies for decades, private markets are still dominated by institutional capital. As a global investment group whose priority since inception in 1996 has been the generation of performance for its clients, SYZ Group recognises the potential, in terms of returns and diversification, of private market strategies and aims to make them more accessible to its non institutional clients.

Eric Syz, CEO of SYZ Group, notes, “SYZ Capital is the latest evolutionary step for SYZ Group. It demonstrates we are continually breaking the mould and innovating for our clients. With SYZ Capital, we aim to democratise private equity investments.”

He adds, “Our client base is mainly composed of entrepreneurs, who understand the real economic impact of investing in private companies; it means sharing a vision and benefitting from the growth generated by a successful business model.

“Many of our clients have built great companies, creating economic growth and jobs, not only because they had good ideas, but also because they were supported by financial partners that shared the same vision.”

According to recent surveys, 79% of investors plan to increase their private equity allocations in 2019, and 62% intend to increase their allocation to private debt.