While bond yields are stuck at historic lows, valuations of other traditional asset classes seem to have peaked. In this world of low returns, investors are keen to diversify their portfolio with long-term investments. The private markets, especially real estate private equity, are where institutional investors and family offices have long turned to in this type of financial environment.
Following an initial successful foray in private equity, which demonstrated the keen interest of the Bank’s clients for alternative investment opportunities, BIL is expanding its real estate investment offering.
The advantages of this asset class are undeniable. As well as solid growth potential, the sector is also a means of diversifying investment portfolios, alongside traditional equities and bonds. Moreover, some real estate strategies have the additional benefit of being less exposed to economic cycles and helping protect investors’ capital against inflation over the long term.
In order to offer its clients the best solution in this class, BIL’s partner of choice is Quilvest Capital Partners, a highly regarded firm in alternative asset management with a track record spanning more than 45 years. The aim of this partnership is to offer clients “value-add” real estate investments in Europe, which form the core of Quilvest Capital Partners' real-estate investment strategy. “Value-add” strategies focus on modernising and making properties acquired across a range of commercial real-estate segments ESG-compliant.
“The current situation on financial markets is particularly complex and investors are keen to find innovative solutions. We are convinced that our offering developed with Quilvest Capital Partners will meet our clients’ needs,” explains Fabien Machard, Head of UHNWI Entrepreneurs & Intermediaries at BIL.
“We’re delighted to work on this real estate investment offering with BIL, one of our major long-standing partners. We specialise in “value-add” strategies, which in this low-rate environment in Europe offers a very appealing risk/return ratio,” said Emile Zakhia, Head of Development, Quilvest Capital Partners.