Wealth & Finance International - Fund Awards 2015

www.wealthandfinance-intl.com 9 Investment Efficiency - The case for co-investments and secondary in- vestments as beneficial additions to a fund portfolio can be easily made. Secondaries on the one hand allow for a quick increase of a private equi- ty real estate portfolio’s investment level for better capital efficiency, early distributions and attractive IRRs and multiples. Moreover, the visibility of the return potential is significantly higher for secondaries than for prima- ries. Adding co-investments, on the other hand, may increase the upside potential of a diversified portfolio as the exposure to selected assets has been carefully increased. Moreover, co-investments may decrease the overall fee load as direct deals are often offered at reduced, or even eliminated, fees and carry. Information - For fund of funds managers with an integrated approach, administration is much more than reporting and data warehousing; it is the data backbone that allows assessing their private equity real estate portfolios in depth. Clearly, such managers have a competitive advantage both for secondaries and co-investments. They can often move more quickly in secondary transactions, as they might already be invested in some of the funds being transacted or even have insight from advisory board seats. Knowing both the GPs as well as the portfolio assets is a key advantage that allows for fast execution of secondary transactions. For co-investments, a thorough analysis of the asset and the characteristics of the transaction are necessary to determine whether it is worth taking a higher concentration risk on a single deal. Fund of funds managers with portfolios of more than a hundred funds and thus potential exposure to thousands of private equity real estate assets clearly have an advantage in assessing a deal’s risk-adjusted performance potential. Stable/Less Volatile Perfomance – A portfolio of private equity real estate or infrastructure funds with different cash flow streams over the invest- ment period provides for an investor a less volatile performance stream. A portfolio of funds is much more stable than single funds can be. For investors who are dependent on a regular income stream a fund of funds can be the ideal solution to better match the cash flows. Widen the Opportunities – Sometimes investors are restricted to invest in certain fund structures but are not prohibited to invest in the asset class at all. For structural issues fund of funds provide a blocker function and can enable an investor to use the fund of funds model as a gateway to access interesting private equity real estate or infrastructure funds. Deutsche Finance Business Model Founded in 2005, Deutsche Finance Group is based in Munich with offices in Zurich and Paris. The company is 100% management owned. Deutsche Finance fund of funds offer investors diversified access to institutional private equity real estate and infrastructure strategies to de- livering long time superior investment performance, broad diversification, excellent manager allocation and ongoing risk management capabilities. Deutsche Finance Group is an investment company offering all types of clients tailor made products with an excellent investment team, top in class investment managers and a well implemented investment process. Every target investment is handpicked, with a thorough due diligence process and serious negotiations to have a fully aligned investment man- ager. We have access to the best in class managers in the private equity real estate and infrastructure business. They all are the best positioned, well focused specialists for certain markets and sectors and earned consistent track record of success for a long term. They all help us to capitalize on the extraordinary opportunities in the global private equity real estate and infrastructure landscape. Products - Private individuals for example are serviced with structured fund of funds (Deutsche Finance Private Funds). In this area Deutsche Finance offers two main product series: a short term private equity real estate fund of fund series with a onetime investment cycle, and a long term private equity real estate and infrastructure fund of funds with reinvestments and active management approach to build up a portfolio of real assets. Both products are in the market for many years now and more than 16.000 clients gave us commitments in these funds. The product range for professional and institutional investors is much more individual (Deutsche Finance Individual Funds/Deutsche Finance Institutional Funds). With regards to the certain needs and restrictions of any individual investors we are able to structure a tailor made fund of funds strategy for a private equity real estate and/or infrastructure port- folio. A broad diversification focus can also be on emerging managers, emerging markets, distress assets or even a regional or sector focus. Additional services can be added as per request of the investor. Distribution – For the distribution of our products for private individuals we use external distribution companies. Most of these companies work with us for many years and some of them helped us to start our business model 10 years ago. All of them are serviced with state-of-the-art prod- ucts, individual trainings and seminars, an online platform and special coaching. Institutional clients are advised by our management which is one of the most experienced fund selection teams for private equity real estate and infrastructure in the market. Network – With investments of 4 bln. USD in more than 200 invest- ment strategies worldwide the investment team of Deutsche Finance established a worldwide network of GPs, LPs and service partners. With our yearly “Deutsche Finance Group Investment Forum” we invite 150 of our best distribution people to hear world class speakers and to learn more about our strategies and partners. Our quarterly “LP round table” organised to bundle the know-how and investment power of some of the largest fund of funds investors in the market from Europe and the US is a perfect platform to share investment ideas, create deal flow and to maintain our approach as a well-respected player in the private equity real estate and infrastructure asset management business. Regulation – Deutsche Finance Group is an integrated investment com- pany serving all steps of an investment process in-house. Being regulat- ed by German Financial Markets Supervisory Authority (BaFin) we stand for a well implemented investment process, a proper risk management and integrated compliance management. We offer our clients solutions for regulated and unregulated products as well. Award We are very pleased with the growth of our company and the success of our investments, and Deutsche Finance Group is very delighted and proud to receive acknowledged with this award. It is an honour for us but also the proof that fund of funds are not only a niche product. It is the proof that our product and strategy is being recognised by profes- sionals as an interesting alternative or addition when building up a real asset portfolio. It is our vision to create the best investment platform for indirect investments in private equity real estate and infrastructure in the industry. We are inspired by the trust of our clients and partners and the everyday passion of our team. Be in the right market, with the right timing and the right partners. We are happy to share our experience with you!