Fund of Hedge Funds
We have invested in hedge funds since 2008.
Hedge funds are an attractive asset class as part of an overall portfolio, as the return of the asset class, to a significant extent, is independent of the equity and bond markets, thereby minimizing the risk of loss in periods of particularly uncertain financial markets. At the same time, the asset class has historically proven that it can deliver an attractive risk-adjusted return.
Through Secure Hedge, our Fund of Hedge Funds, we seek to generate an attractive risk-adjusted return regardless of the financial markets. The fund’s low correlation with the stock market historically means that it helps diversify a traditional portfolio consisting of equities and bonds.
Active portfolio management ensures exposure to attractive niche investment strategies that are typically difficult to access, and which are independent of each other. We are always looking for hedge funds that meet our investment criteria, while continuously monitoring and evaluating the funds we are invested in. Risk management plays a key role in the selection of funds and the fund’s ability to generate returns in challenging equity markets.
In addition to direct relationships with current fund managers and dialogue with potential funds, the portfolio team often participates in international hedge fund conferences.
Secure Hedge is an evergreen fund open to investors.
For further information, please contact
Jeppe Blirup
Mobile: +45 27 14 27 13
E-mail: jb@aequity.dk
Private Equity Fund of Funds
We have been investing in private equity funds since 2009.
Private equity is an attractive asset class as part of a multi asset portfolio, as the asset class helps to diversify the overall portfolio risk without compromising returns.
An investment in private equity funds can be compared to owning a globally diversified equity portfolio. However, unlike shareholders in listed equities, private equity funds exercise active ownership. By committing capital for an extended period, the Limited Partner receives an illiquidity premium, and extends the General Partner time that enables it to make strategic investments and implement operational improvements in the underlying portfolio companies, thereby creating value for investors. Historically, private equity as an asset class has been able to deliver an attractive risk-adjusted return compared to listed equities, while the asset class contributes to diversifying the risk of the overall investment portfolio.
During the investment period, the General Partner draws down the capital that the Limited Partners have committed to make investments directly in private companies. There are a few different investment strategies, where the primary difference is the stage at which the General Partner invests the capital; i.e. whether the General Partner focuses on making buyout investments with majority ownership or minority growth or venture capital investments.
Alternative Equity Partners’ own Private Equity funds aims to invest in 6-8 of the best private equity funds in Western Europe and North America and within different segments of private equity, to create a broad exposure to the asset class.
For further information, please contact
Jeppe Blirup
Mobile: +45 27 14 27 13
E-mail: jb@aequity.dk
Real Estate
We have invested in real estate since 2010 in partnership with Bloch Property Management and in 2019 we made a collaboration with SF Management regarding the establishment of a new nation-wide real estate fund.
Since 2010, we have invested in prime Copenhagen residential properties worth over DKK 1.3 billion consisting of more than 25 properties with over 700 apartments. After a period of years having created additional value through refurbishment and effective administration, we divested a part of the real estate portfolio in 2018, which have created a very attractive return for our investors of committed capital. In addition, we have established new real estate funds, focusing on value creation through development/expansion followed by operation as rental properties;
- Developed and built 35 townhouses and a community house on the Musicon plot in Roskilde. The fund has had final close and the properties is fully rented.
- Bought a commercial property at Valby Langgade at Spinderiet shopping center for the purpose of revamp and conversion to rental properties.
- Bought a ground area in central Rødovre for the purpose of building 8,800 sqm rental properties.
In collaboration with SF Management we have in spring 2019 established a new nation-wide real estate fund: Bolig+ I K/S. The objective with the fund is to generate a return of 8-10% annually focusing on deliver a stable yearly profit of 4-5% distributed to investors. The fund has a high risk diversification by investing in new/newly build rental properties in the 5 areas in Denmark with the greatest population growth.
Market conditions for transportation today means there is a demand for strategically well-located logistics properties. Therefore, Alternative Equity Partners establish “AEP Logistics Properties I” in 2020 – a sale & leaseback platform in a strategic partnership with DSV Panalpina.
The fund invests in new logistics properties located in logistics hotspots in Northern and Western Europe, Benelux and Germany where investors gain predictable and steady cash flows through fixed long-term leases of 10 years with DSV as a strong tenant.
For further information, please contact
Erik Andersen
Mobile: +45 21 14 67 52
E-mail: ea@aequity.dk
Construction Finance
We have provided construction finance since 2012 in partnership with Bloch Property Management.
Through a period of years we have provided construction finance towards larger property projects in the Capital region. The opportunity to provide construction finance has arised after a stricter capital requirement imposed on Danish banks. Consequently, access to capital has become challenging for property developers.
Following completion of a number of project financings in SPVs we established Byggefinansiering I K/S in early 2016 with the purpose of providing construction finance towards attractive residential projects. This fund was closed for commitments in Autumn 2016 with committed capital of more than DKK 350 million, now fully invested.
Byggefinansiering II K/S had final close in May 2018 with total commitments of more than DKK 650 million. Similarly to fund one this fund aims to continue the strategy of providing construction finance towards healthy residential property projects primarily in the Capital region.
The demographic development in Denmark illustrates that there is still a significant need for housing construction in and around the largest cities in Denmark. Through its network of experienced property developers, Alternative Equity Partners is able to select and finance the most attractive property projects. Loans are typically unitranche senior secured through comprehensive security and covenant packages and monitored very closely during monthly onsite meetings at the construction site. Loans are made on favourable terms in a market where demand for capital significantly exceeds the supply.
Our construction finance fund is run in close partnership with Bloch Property Management, which is a specialised and highly experienced property manager.
For further information, please contact
Erik Andersen
Mobile: +45 21 14 67 52
E-mail: ea@aequity.dk
Renewable energy
We have invested in renewable energy projects since 2014 in partnership with Momentum Group.
In 2014, Alternative Equity Partners negotiated the acquisition of Egeln KG, a 25 megawatt wind farm built in 2006 located near Magdeburg, Germany. During the investment process, the transaction was fully analysed. The investment provides the participating investors with a stable cash flow and diversification against traditional asset classes such as equities and bonds. The transaction was carried out in partnership with the Momentum Group, a leading manager and administrator of wind and solar parks. Today, Momentum manages the wind farm for the owner company, Egeln Vindpark A/S.
Alternative Equity Partners and the Momentum Group also works together in the management of 18 solar plants in Italy.
For further information please contact
Lars Tønnesen
Mobile: +45 25 24 83 13
E-mail: lt@aequity.dk
Technology Growth Equity
We have in close partnership with Promentum Capital, launched a technology fund in 2016.
Promentum I K/S was established in partnership with Promentum Capital in mid-2016. The fund had final close in June 2017 with commitments of DKK 273 million. The initial portfolio consisted of investments in 21 Danish technology companies, all of whom share a scalable business model in different Software as a Service (SaaS) segments, including artificial intelligence, media & entertainment and enterprise software.
The investment team has more than 25 years of experience in the technology sector, and the investment committee consists of experienced financiers and technology investors from Denmark and abroad.
The portfolio of Danish start-up companies is spread across all stages of development, but with an overweight at the late stage. The investment team works closely with the portfolio companies, through workshops, seminars and teleconferences discussing issues from strategic to operational level. Growth scenarios and business models are continuously evaluated and adapted to changing market conditions.
The investment process is based on the Minimum Viable Product concept, where portfolio companies quickly get the product or service to the market to test its viability. This provides valuable feedback from users as well as the ability to make quick adjustments based on this. The goal is to accelerate international growth at the highest possible rate while at the same time controlling the business risk.
For further information, please contact
Morten Windfeldt
Mobile: +45 20 30 25 85
E-mail: mw@aequity.dk