Bestinver and BlackRock have publicly presented the fruit of their alliance in Spain. It is a private capital fund aimed at institutional investors and which they have named ‘Bestinver Private Equity Fund FCR’. This product requires a minimum investment of 100,000 euros and the commitment to maintain that nominal ten years (extendable to twelve, according to the prospectus), and in exchange the expectation is that it generates an annualized return of more than 10%. The objective is to reach 200 million euros of assets under management. The approximate maximum commission will be around 2.25% once those applied by Bestinver and BlackRock are added. Proportionally, those who invest less as usual will pay more.
The new ‘Bestinver Private Equity Fund FCR’ is a fund of funds that will base its portfolio on other products already managed by BlackRock. Of this they will allocate 25% to co-investments, another 25% to secondary funds, 25% to growth, 15% will be placed in impact funds and the remaining 10% in primary markets, all through products from the largest manager in the world in volume of assets under management. “It is not a mere fund of funds. We have been working on this for twelve months. It is a long-term strategic alliance,” said Javier García Díaz, head of sales for Iberia at Blackrock, during the presentation, who anticipated the arrival of more funds and ruled out that was looking for alliances with other national managers.
The growth of private markets to the detriment of public ones is drawing a clear trend, increasingly evident, that redirects high net worth money towards more sophisticated portfolios that are not exposed to the criteria of the stock markets. Bestinver’s objective is to reach around 30% of its clients, which currently number more than 46,000. The manager owned by Acciona seeks to increase the volume of assets in private equity and, in fact, its objective is that 25% of the assets under management will come from private capital in a few years, out of a total of 6,000 million. Bestinver has launched a 150 million euro Socimi, they have an infrastructure fund (the first of which is thanks, logically, to the Entrecanales family’s knowledge of the sector), they are pending closing a second fund in this segment to early 2024 with 450 million euros. Along with the 200 million from its new alliance with BlackRock, Bestinver “will have around 700-800 million euros in private capital and we aim to reach 1,500 million euros” in the medium term, said Rafael Amil, business director of the manager during the press conference.
The alternative investment industry is expected to increase its growth by 50% in the coming years, going from 15 trillion dollars today to 23 trillion, and reaching to represent 20% of the total value of global assets, according to data from BlackRock, which is the largest fund manager in the world. “The so-called great moderation of controlled inflation has come to an end. Now we are entering a period of greater volatility, investors are going to have to review their asset portfolio more frequently and begin to evaluate other options, such as alternative or equity funds. private. The 60/40 portfolio [renta fija y renta variable] has been outdated. The portfolio of the future involves having 50% in equities, another 30% in fixed income and 20% in alternatives. It’s the new 60/40”, Javier García.