FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments exceeding 18 billion euros, making it one of the largest providers in Germany.
For more than 20 years, we have been offering our clients individually tailored risk management solutions. Market risks are actively managed according to risk and return parameters jointly defined in advance.
In institutional asset management, FERI offers a broad range of asset management services for institutional investors. Our investment specialists have many years of experience in all asset classes and follow a multi-asset approach ranging from the development and implementation of individual investment strategies to quantitative risk management and control.
FERI expects demand for alternative investments such as private markets (private equity, infrastructure, real estate) and hedge fund investments to continue rising strongly in the coming years. FERI currently manages alternative investments exceeding 18 billion euros, making it one of the largest providers in Germany.
For more than 20 years, we have been offering our clients individually tailored risk management solutions. Market risks are actively managed according to risk and return parameters jointly defined in advance.
FERI is a byword for comprehensive, individual, transparent and sustainable advice and support for private clients. With over 30 years of experience, we offer private investors a wide range of asset management services.
For us, your requirements and needs are the basis for planning and optimising your asset structure. We always keep an eye on all legal and tax aspects and try to bring about improvements for you. As we work strategically on a long-term basis, we place a strong focus on comprehensive future and succession planning. Foundation consulting is also part of our strategic asset structuring.
The FERI family office is the strategy advisor for your assets. We offer services ranging from strategic asset planning, implementation consulting and results monitoring and controls, through risk management and asset protection strategies to sustainability consulting.
With the help of an asset liability management study, FERI can show you whether a financing system in its current form is sustainable and whether sufficient risk carriers are available or whether a modification of the system is advisable.
During the transition to a sustainable future, FERI guides and supports you in the implementation of a sustainability concept and in the implementation and further development of existing solutions.
FERI’s comprehensive support ranges from optimal asset allocation and investment planning to appointing managers, reporting, monitoring and controls. Clear structures always ensure well-documented decisions and transparent investments.
FERI carries out a cost check in three steps and determines the costs for mandates, depositaries and investment management. In times of persistently low interest rates, these are a key factor in the performance of any portfolio.
FERI uses the three-step manager check to assess the quality and performance of asset managers.
FERI evaluates current portfolios in terms of expected returns and risk and checks whether the allocation still meets the requirements regarding yield and available risk budget. In addition, FERI presents you with alternative portfolios that promise higher returns with the same risk or offer similar opportunities for returns with reduced risk.
To ensure the success of the investment, FERI provides guidance on risk management processes. These range from the preparation of a risk manual and risk inventory to regular reporting and commentary.
In order to identify the risk sources and their distribution in the portfolio of an investment, FERI prepares a risk sheet, which makes this information transparent and clear. It clearly shows what share of the overall risk is attributable to the individual investment funds, segments and asset classes.
FERI offers its clients the entire process of investment consulting and has continuously developed it since the 1990s. Thanks to our extensive experience, self-developed research and analysing tools and the access to around 250 employees in all areas of the investment process, we create significant added value for our clients through our range of consulting services.
Asset allocation – an overview of the latest market developments. FERI offers optimal, quantitative and qualitative support for decision-making, both in terms of strategic and tactical asset allocation.
FERI’s economic expertise is used in high-profile companies for operational planning and market research and in numerous banks for risk management from an industry perspective. We offer our clients the following services: worldwide economic data; global macro research; global economic, interest rate and currency forecasts; country and sector outlooks; FERI sector rating.
Set this page to:
CONTACT
Telephone
Contact
FERI AG

T +49 (0) 6172 916-3600
F +49 (0) 6172 916-9000
fag@feri.de


Rathausplatz 8-10
D-61348 Bad Homburg

Contact form
Please accept the marketing cookies here to show the form.
Telephone CONTACT
Contact CONTACT
Login
Languages
FERI AG

+49 (0) 6172 916-3600
+49 (0) 6172 916-9000
fag@feri.de


D-61348 Bad Homburg
Rathausplatz 8-10

Contact form
Please accept the marketing cookies here to show the form.
Set this page to:

Alternatives Update – Private market secondaries: "Perfect time for lucrative investments

Bad Homburg, 1/30/2024
by FERI
  • Alternative investments indispensable for effective asset protection
  • Private markets secondary market offers investors attractive valuation discounts
  • J-curve effects can be greatly reduced in the current market environment

The rapid and steep rise in interest rates over the past two years has subjected traditional portfolios to a tough stress test and shown how important alternative investments are for performance-oriented asset allocation. "Asset protection can no longer be achieved with equities and bonds alone. The return of attractive bond yields does nothing to change this," says Dr. Marcel Lähn, Member of the Management Board and Chief Investment Officer at FERI. Especially in times of higher base yields, volatility strategies are particularly attractive for additional premium income. Hedge funds also proved their worth once again in 2023. "In times of high volatility, market-independent hedge funds make an indispensable contribution to diversification and risk adjustment," adds Lähn and continues: "In addition, private market investments offer a significant increase in the expected return of a portfolio."

Investors must take countermeasures

The recent market corrections have shifted the weighting between alternative investments and traditional investments. The relative value of alternatives in many investors' portfolios has risen sharply due to the price losses in equities and bonds in 2022. In many cases, the legally prescribed quotas for alternative investments were exceeded as a result. In order to comply with the regulatory requirements, many investors are now forced to reduce parts of their private market allocations. "The secondary market is currently being increasingly used by private equity funds for portfolio reallocation and to procure liquidity," says Marcus Storr, Head of Alternative Investments at FERI AG. The associated price discounts are creating very attractive investment opportunities. "Fund shares or direct company investments are sometimes available at a discount of up to 30%. And this applies to funds that operate with low leverage and have profitable companies in their portfolios. The window of opportunity for such lucrative offers is still open until the beginning of 2025," Storr is convinced.

Private debt secondaries as a portfolio addition

As private loan agreements have come under pressure due to the sharp rise in market interest rates, the private debt segment is currently also offering opportunities. Investors are increasingly disposing of fund units and selling them on the secondary market at favorable conditions. In the still relatively young secondary market for private debt, however, expertise and a good network are
network are particularly important in order to invest successfully. From a diversification perspective, it definitely makes sense to invest not only in private equity secondaries, but also on the credit side.

In the current environment, a secondary market investment also offers the advantage over subscribing to a newly launched fund that the J-curve effect, which describes the initial loss phase of a private equity investment, can be greatly shortened or even completely eliminated. "Due to the price discounts, the investor does not have to wait several years before reaching the profit zone with a secondary market investment. The investment pays off from day one. There are also no administrative capital calls in this case, as there is often an initial full payment," adds Storr.


About FERI

The FERI Group, headquartered in Bad Homburg, Germany, was founded in 1987 and has developed into one of the leading multi-asset investment houses in the German-speaking region. FERI offers tailor-made solutions for institutional investors, family assets and foundations in the business areas:

Founded in 2016, the FERI Cognitive Finance Institute acts as a strategic research center and creative think tank within the FERI Group, with a clear focus on innovative analyses and method development for long-term aspects of economic and capital market research.

Together with MLP, FERI currently manages assets of approximately €56 billion, including around €18 billion in alternative investments. In addition to its headquarters in Bad Homburg, the FERI Group has offices in Düsseldorf, Hamburg, Munich, Luxembourg, Vienna and Zurich.

.



Media relations contact

Marcel Renné

Chairman of the Board & CEO

Rathausplatz 8-10

D-61348 Bad Homburg