This new project, launched in collaboration with well-known international investment funds, strengthens Mediobanca Private Banking’s offering in private markets.
In comparison to typical real-economy investments made through closed-end vehicles, semi-liquid solutions allow individual investors to contribute capital more quickly and with greater flexibility.
In contrast to closed end funds, it also permits frequent subscription, which shortens the time needed for the capital’s initial usage.
The tactics also make it possible to redeem at regular intervals up to a specific maximum.
This will change the traditional strategy to vintages and increase the investment component by enabling Mediobanca’s clients to access a greater number of counterparties across all types of assets and be more flexible in their allocation.
Apollo Global Management, a asset manager with around $598bn in assets under management, will be involved in the initial placement.
With the help of the arrangement with Apollo, the Bank’s ultra high net worth clients will have access to a substantial private markets approach and investment portfolio that Apollo has amassed over the last ten years.
Another innovation that the bank believes will improve the efficiency with which the private markets component is included in model portfolios is the addition of semi-liquid products to Mediobanca Private Banking’s offering.
The basic asset allocation methodology will therefore be supplemented with an added component.
It will aim to boost returns while lowering volatility and correlation with public markets.
Angelo Viganò, head of Mediobanca Private Banking said:
“This partnership between Mediobanca Private Banking, leader in Italy in the offering of private markets solutions, and Apollo Global Management, a manager with proven experience in alternatives, testifies to a common desire to create innovation in the private markets sector, focusing on opportunities in funds that evolve high-potential investments into a new structure, for the benefit of customers.’’
Apollo’s senior advisor for Italy and operating partner, Andrea Moneta, added:
“The development of investment solutions to address the needs of the Wealth Management industry is a strategic priority for Apollo.”
”After years of investments in the Italian real economy, we are pleased to now enter the Italian private banking market with Mediobanca, which over the years has proved to be an innovator and precursor in the development of private markets offerings.’’