Specialized Portfolio Construction and Oversight
Manager Selection: Based on extensive industry experience and investment expertise, Capital Innovations’ proactive manager selection process is designed with the goal of successfully identifying and selecting top-performing fund managers.
Access: Our access to top fund managers comes from our scale, global network, prestigious client roster and a proactive effort to find and source. We have a history of successfully accessing top-tier opportunities for new clients and expanding those relationships for our existing clients.
Industry Leading Private Markets Real Asset Research and Data: One of Capital Innovations’ unique competitive advantages is our research team that works diligently to broaden and enhance Capital Innovations’ global market perspective, as well as inform our investment decisions. Our research efforts are enhanced by the extensive Capital Innovations Fund Investment Database, which includes active Real Asset funds representing a myriad of managers since our inception.
Initial Rating with the Capital Innovations InSight™ Process
First, the Capital Innovations InSight™ process, which uses Capital Innovations’ proprietary model, analyzes available investment manager data and rates each product according to seven factors: business, staﬀ, investment process, investment risk, performance, terms/conditions, and operations.
The Capital Innovations InSight™ process applies a quantitative framework around the fundamental insights Capital Innovations believes indicate investment opportunities which may be well-positioned to ultimately add value going forward.
This initial review process allows Capital Innovations’ research professionals to quickly identify investment products with the strongest potential of ultimately obtaining a “buy” rating after Capital Innovations’ due-diligence process concludes. Products that receive an above-average rating may move on to Capital Innovations’ full due diligence and rating process. We note a qualitative override of the process result can move a selected product into the next phase of our research process. Overrides typically occur when the data does not match a fundamental understanding of a product (e.g., a newly oﬀered product from a well-established, highly regarded manager).
Portfolio Construction: Capital Innovations works closely with clients to build and manage their optimal private markets portfolios. Along with a strategic plan defining both short- and long-term objectives, Capital Innovations utilizes several proprietary investment tools to ensure that our clients’ portfolios are well positioned to achieve set objectives, as well as to adjust as needed based on market fluctuations or changing goals.
An Investment Culture Built on Active, Risk-Disciplined Strategies
At Capital Innovations, our professionals have been actively observing and investing in the global private markets for decades. We are an independent alternative investment management firm providing innovative private market Real Asset services to sophisticated investors around the world. The firm has been involved in private markets Real Asset investing since our inception and currently has a global clientele. Our investment approach benefits from the strength of our Global Private Markets Real Asset platform. It helps explain the longevity of relationships.
Michael D. Underhill, Founder & Chief Investment Officer
Success Through Differentiation - Investment Culture
The over or underperformance of private Real Assets, which now a major presence in institutional portfolios, has the potential to impact total portfolio returns as much as that of public investments.
Once dominated by private equity buyouts and venture capital, private Real Asset strategies are now numerous, diverse, and able to contribute to specific investment outcomes: growth, income, real return, or a combination thereof.
Current pricing for large, auctioned private assets is stretched. Within keystone private Real asset classes – Agriculture, Timber, Energy, Infrastructure and Natural Resources, Metals and Minerals Mining Funds – we often focus opportunities in smaller markets and niche areas, where competition is lower and specialized underwriting expertise is a prerequisite.
Managing risk and monitoring potential over-concentrations are key concerns in building private asset portfolios. Investors can take proactive steps to gain better diversification or to hedge, but there’s no denying that it’s a resource-intensive endeavor.
Private Market Real Assets - Real Expertise™